Adtalem Global Education Inc (ATGE)

Pretax margin

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before tax but after interest (EBT) US$ in thousands 298,514 163,937 112,035 -51,494 75,766
Revenue US$ in thousands 1,788,290 1,584,650 1,450,830 1,387,120 899,248
Pretax margin 16.69% 10.35% 7.72% -3.71% 8.43%

June 30, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $298,514K ÷ $1,788,290K
= 16.69%

The pretax margin of Adtalem Global Education Inc. exhibits notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the company reported a pretax margin of 8.43%, indicating a relatively healthy level of profitability before taxes. However, in the subsequent year ending June 30, 2022, the pretax margin declined sharply into negative territory at -3.71%, reflecting a period of financial underperformance or increased expenses relative to revenue.

Following this decline, there was a marked recovery in the fiscal year ending June 30, 2023, with the pretax margin improving to 7.72%. This reversal suggests a re-establishment of operational efficiencies or revenue growth surpassing the associated costs. The positive trajectory continued through the subsequent years, with the margin increasing to 10.35% by June 30, 2024, and further expanding to 16.69% by June 30, 2025. This sustained upward trend signifies a remarkable enhancement in profitability margins, likely driven by improved cost management, revenue expansion, or both.

Overall, the pretax margin progression indicates periods of volatility with a significant trough in 2022, followed by a consistent and substantial recovery. The upward trend in the latter years signifies strengthening operational efficiency and profitability, positioning the company for improved financial health and potentially higher value creation in the future.