American Woodmark Corporation (AMWD)
Pretax margin
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 126,538 | 151,968 | 122,686 | -42,979 | 80,693 |
| Revenue | US$ in thousands | 1,709,580 | 1,847,500 | 2,066,200 | 1,857,190 | 1,744,010 |
| Pretax margin | 7.40% | 8.23% | 5.94% | -2.31% | 4.63% |
April 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $126,538K ÷ $1,709,580K
= 7.40%
The analysis of American Woodmark Corporation's pretax margin over the specified periods reveals notable fluctuations indicative of evolving profitability dynamics.
As of April 30, 2021, the pretax margin was 4.63%, reflecting a modest profit before tax relative to revenues. In the subsequent year ending April 30, 2022, the margin experienced a significant decline to -2.31%, indicating a shift into pretax losses, possibly due to increased costs, lower revenues, or other operational challenges during that period.
By April 30, 2023, the pretax margin rebounded to 5.94%, signifying an improvement in profitability and effective management of expenses relative to revenue generation. Continuing this positive trend, the margin increased further to 8.23% by April 30, 2024, illustrating stronger profitability before tax.
However, in the following year ending April 30, 2025, the pretax margin slightly declined to 7.40%, though it remained positive and relatively high compared to previous years. This slight decrease may suggest a marginal reduction in operational efficiency or increased expenses, but the overall trend demonstrates a recovery and periods of profitability following a substantial downturn.
Overall, the pretax margin has exhibited volatility over the past years, characterized by a notable dip into negative territory in 2022, followed by a substantial recovery and sustained improvement through 2024, with a slight moderation in 2025. This pattern reflects the company's ability to navigate operational challenges and adapt to market conditions, maintaining a generally favorable pretax margin trend after the downturn.