Acuity Brands Inc (AYI)
Pretax margin
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 446,700 | 493,900 | 396,200 | 324,700 | 424,900 |
| Revenue | US$ in thousands | 3,913,100 | 3,981,400 | 3,461,000 | 3,326,300 | 3,672,700 |
| Pretax margin | 11.42% | 12.41% | 11.45% | 9.76% | 11.57% |
August 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $446,700K ÷ $3,913,100K
= 11.42%
To analyze Acuity Brands, Inc.'s pretax margin over the past five years, we can observe a fluctuating trend. The pretax margin, which represents the percentage of each dollar of revenue that the company retains as pre-tax profit, decreased from 11.57% in 2019 to 9.76% in 2020, indicating a decline in profitability during that period. However, there was a notable recovery in 2021 as the pretax margin improved to 11.45%, and then increased further to 12.33% in 2022, surpassing the 2019 level. This upward trend potentially signifies improved cost management, better operational efficiency, or an increase in sales.
However, in 2023, there was a slight regression as the pretax margin decreased to 11.30%. Although this decline may raise concerns, it's important to consider external factors that could have influenced the company's profitability, such as changes in market conditions, industry competition, or global economic events.
Overall, while the pretax margin experienced fluctuations, Acuity Brands, Inc. has generally maintained a reasonable level of profitability over the five-year period, with periodic improvements demonstrating the company's ability to adapt to changing economic conditions and optimize its operations.
Peer comparison
Aug 31, 2023