ANSYS Inc (ANSS)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	592,138	575,315	515,354	493,925	522,583
Revenue	US$ in thousands	2,269,950	2,065,550	1,906,720	1,681,300	1,515,890
Pretax margin		26.09%	27.85%	27.03%	29.38%	34.47%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $592,138K ÷ $2,269,950K
= 26.09%

Ansys Inc.'s pretax margin has been showing a declining trend over the past five years. In 2019, the pretax margin was the highest at 34.47%, indicating strong profitability before taxes. However, since then, the margin has been steadily decreasing, with percentages of 29.38% in 2020, 27.03% in 2021, 27.85% in 2022, and 26.09% in 2023.

The declining trend in pretax margin suggests that Ansys Inc.'s profitability before taxes has been weakening over the years. This trend may be a cause for concern as it indicates that the company is not as efficient in generating profits relative to its revenue as it was in previous years. It would be important for Ansys Inc. to closely examine its cost structure, revenue streams, and operational efficiency to reverse this trend and improve its profitability.