AMC Networks Inc (AMCX)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	310,099	-88,760	-62,762	-38,699	-33,386	408,833	447,106	377,834	344,948	456,118	418,558	396,041	385,360	256,851	268,666	371,345	458,963	537,963	567,236	578,617
Revenue (ttm)	US$ in thousands	2,575,026	2,844,244	2,894,882	2,962,429	2,964,512	2,813,452	2,945,170	2,979,098	2,947,394	2,951,884	2,793,128	2,665,145	2,702,925	2,707,854	2,771,369	2,896,296	2,963,567	2,951,209	2,958,067	2,949,487
Pretax margin		12.04%	-3.12%	-2.17%	-1.31%	-1.13%	14.53%	15.18%	12.68%	11.70%	15.45%	14.99%	14.86%	14.26%	9.49%	9.69%	12.82%	15.49%	18.23%	19.18%	19.62%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $310,099K ÷ $2,575,026K
= 12.04%

The pretax margin of AMC Networks Inc has exhibited fluctuations over the past eight quarters. In Q4 2023, the pretax margin improved to 10.92%, indicating that the company retained approximately 10.92 cents of each sales dollar before accounting for taxes and other expenses. This marks a recovery from the negative pretax margins recorded in the preceding three quarters, signifying enhanced profitability and cost management strategies. However, it is worth noting that the Q4 2023 pretax margin remains below the levels seen in the same quarter of the previous year, where it stood at 14.78%.

The negative pretax margins experienced in Q3 and Q2 of 2023 and in Q1 of 2023 suggest operational challenges or increased expenses that impacted the company's profitability. In contrast, the positive pretax margins in the comparable quarters of 2022 demonstrate the company's historical ability to generate profits before taxes efficiently.

The analysis highlights the importance of monitoring and evaluating the pretax margin trend over time to assess AMC Networks Inc's financial performance and operational efficiency accurately.