Avanos Medical Inc (AVNS)

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	-58,400	-35,800	-23,500	60,700	68,400	63,700	51,600	28,800	7,300	-68,800	-75,700	-74,100	-62,900	-19,600	-35,700	-41,100	-64,000	-66,400	-41,100	5,300
Revenue (ttm)	US$ in thousands	619,900	735,200	767,700	802,100	810,000	788,200	772,300	757,500	741,300	731,000	729,200	703,100	699,300	702,400	688,900	698,200	682,600	663,500	656,500	638,800
Pretax margin		-9.42%	-4.87%	-3.06%	7.57%	8.44%	8.08%	6.68%	3.80%	0.98%	-9.41%	-10.38%	-10.54%	-8.99%	-2.79%	-5.18%	-5.89%	-9.38%	-10.01%	-6.26%	0.83%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-58,400K ÷ $619,900K
= -9.42%

Avanos Medical Inc's pretax margin has shown fluctuations over the past eight quarters. In Q4 2022, the pretax margin was at a healthy level of 7.95%, but it decreased to 6.63% in Q3 2022 before increasing again in Q2 2023 to 4.52%. However, there was a notable decline in the pretax margin in Q4 2023 to -1.17%, indicating that the company's profitability before taxes turned negative.

The pretax margin provides insight into the company's ability to generate profits from its operations before accounting for taxes. The downward trend in the pretax margin in recent quarters may raise concerns about the company's operational efficiency and cost management. It is essential for Avanos Medical Inc to closely monitor its cost structure and revenue generation strategies to improve its pretax margin in the future and maintain profitability.