Adtalem Global Education Inc (ATGE)

Pretax margin

		Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	163,001	135,152	133,994	114,725	103,001	108,474	401,593	351,687	300,573	277,411	-32,714	15,727	92,147	-206,006	-77,489	-91,320	-100,273	253,937	141,916	157,973
Revenue (ttm)	US$ in thousands	1,584,652	1,539,386	1,495,810	1,465,402	1,450,826	1,447,416	1,442,615	1,450,979	1,385,780	1,248,015	1,113,947	977,145	906,901	943,164	984,438	1,016,214	1,052,001	1,056,512	1,043,728	1,031,517
Pretax margin		10.29%	8.78%	8.96%	7.83%	7.10%	7.49%	27.84%	24.24%	21.69%	22.23%	-2.94%	1.61%	10.16%	-21.84%	-7.87%	-8.99%	-9.53%	24.04%	13.60%	15.31%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $163,001K ÷ $1,584,652K
= 10.29%

The pretax margin of Adtalem Global Education Inc has displayed fluctuations over the historical period analyzed. The pretax margin shows the percentage of each dollar of revenue that remains as pre-tax profit after deducting all expenses.

In the most recent period available, as of June 30, 2024, the pretax margin stood at 10.29%, indicating that the company retained approximately 10.29 cents of pre-tax profit for every dollar of revenue generated. This represents an improvement from the previous quarter, where the pretax margin was 8.78%.

Looking back over the past few quarters, there are both positive and negative trends in the pretax margin. The company experienced a significant decline in the pretax margin in the fourth quarter of 2022, where it reached 27.84%. This was notably higher than the margin in subsequent quarters, suggesting potential one-time positive factors impacting profitability during that period.

On the other hand, the first quarter of 2021 and the fourth quarter of 2020 displayed negative pretax margins, indicating that the company incurred losses before tax during those periods. However, the company managed to recover from these losses and improve profitability in later quarters.

Overall, the pretax margin of Adtalem Global Education Inc has shown variability but has generally been positive, indicating the company's ability to generate pre-tax profits relative to its revenue. Further analysis would be needed to understand the underlying reasons for the fluctuations and to assess the company's long-term profitability sustainability.