Compass Minerals International Inc (CMP)

Pretax margin

		Sep 30, 2023	Sep 30, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Earnings before tax but after interest (EBT)	US$ in thousands	32,900	9,900	65,000	71,600	77,100
Revenue	US$ in thousands	1,155,100	1,200,100	946,700	1,408,800	1,436,900
Pretax margin		2.85%	0.82%	6.87%	5.08%	5.37%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $32,900K ÷ $1,155,100K
= 2.85%

The pretax margin of Compass Minerals International Inc has exhibited fluctuating trends over the past five years. In the latest fiscal year ending September 30, 2023, the pretax margin stood at 2.73%, reflecting an improvement from the previous year's negative margin of -0.18%. However, compared to the margins of 4.43%, 5.68%, and 5.20% in the preceding years, the latest figure indicates a lower level of profitability before taxes. This suggests a potential strain on the company's ability to generate profits after accounting for operating expenses and before considering tax implications. Further analysis of the company's operating expenses and revenue generation may be warranted to understand the drivers behind the fluctuating pretax margin.