Box Inc (BOX)

Pretax margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	85,160	89,721	85,609	73,798	62,586	60,513	59,272	48,593	34,407	9,166	-16,196	-26,735	-37,464	-40,362	-31,872	-31,145	-42,226	-67,665	-103,356	-131,952
Revenue (ttm)	US$ in thousands	1,090,130	1,073,488	1,059,112	1,050,501	1,037,741	1,031,339	1,019,753	1,004,340	990,874	967,759	941,852	910,323	874,332	839,884	811,843	789,650	770,770	755,442	736,595	716,851
Pretax margin		7.81%	8.36%	8.08%	7.03%	6.03%	5.87%	5.81%	4.84%	3.47%	0.95%	-1.72%	-2.94%	-4.28%	-4.81%	-3.93%	-3.94%	-5.48%	-8.96%	-14.03%	-18.41%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $85,160K ÷ $1,090,130K
= 7.81%

Box Inc's pretax margin has shown a consistent improvement over the past few years, indicating enhanced operational efficiency and profitability. Starting at a negative level of -18.41% in April 2020, the company managed to steadily reduce its losses, narrowing the margin to -8.96% by October 2020. From there, the trend accelerated positively, with the margin improving to -3.94% in April 2021 and further to -1.72% in July 2022.

By October 2022, Box Inc achieved a significant milestone by turning its pretax margin positive at 0.95%, indicating that the company began generating pre-tax profits. The positive momentum continued into the following periods, with the pretax margin showing consistent growth, reaching 8.36% by October 2024.

Although there was a slight decrease in pretax margin to 7.81% by January 2025, the overall trend depicts a strong improvement in Box Inc's profitability and financial performance. This positive trajectory reflects the company's effective cost management strategies and revenue growth initiatives.