Astec Industries Inc (ASTE)
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 | 42,600 | 28,300 | 36,900 | 16,400 | 4,900 | -10,400 | -5,700 | 9,400 | 13,700 | 44,200 | 38,500 | 39,200 | 45,400 | 180 | 3,412 | 22,720 | 25,301 | -17,767 | -14,224 | -93,809 |
| Revenue (ttm) | US$ in thousands | 1,332,400 | 1,346,100 | 1,360,800 | 1,330,300 | 1,271,800 | 1,189,500 | 1,141,500 | 1,101,900 | 1,095,400 | 1,068,200 | 1,032,508 | 1,019,687 | 1,024,892 | 1,069,192 | 1,093,524 | 1,132,663 | 1,168,039 | 1,201,647 | 1,202,450 | 1,170,492 |
| Pretax margin | 3.20% | 2.10% | 2.71% | 1.23% | 0.39% | -0.87% | -0.50% | 0.85% | 1.25% | 4.14% | 3.73% | 3.84% | 4.43% | 0.02% | 0.31% | 2.01% | 2.17% | -1.48% | -1.18% | -8.01% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $42,600K ÷ $1,332,400K
= 3.20%
To analyze Astec Industries Inc.'s pretax margin over the past eight quarters, we observe a fluctuation in profitability before taxes. The pretax margin has shown an improving trend in recent quarters, with Q4 2023 reaching 3.20%, the highest level in the period under review. This positive shift from the previous quarter indicates that the company's ability to generate operating profit before considering income taxes has strengthened.
Despite variability in the pretax margin over the quarters, the overall trend demonstrates a general upward trajectory since Q1 2022. The company has successfully managed to enhance its operational efficiency and control costs, leading to improved profitability ratios. The negative pretax margins reported in Q3 and Q2 of 2022 were concerning, but the subsequent quarters showcased a significant turnaround.
Investors and stakeholders may find the progressive improvement in Astec Industries Inc.'s pretax margin encouraging, signaling effective management strategies and a potentially healthier financial performance. Continued monitoring of the company's financial health and the sustainability of its pretax margin trend would be advisable to assess its long-term profitability prospects.
Peer comparison
Dec 31, 2023