Charles River Laboratories (CRL)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	90,026	514,403	536,041	542,809	575,538	611,925	621,652	638,181	616,605	534,773	534,342	517,600	472,855	482,890	496,927	454,618	446,112	380,085	317,004	291,698
Revenue (ttm)	US$ in thousands	4,086,133	4,070,653	4,059,413	4,065,363	4,086,910	4,314,900	4,293,342	4,227,890	4,106,274	3,792,022	3,683,743	3,605,712	3,459,843	3,333,185	3,172,755	2,930,880	2,859,828	2,759,976	2,697,739	2,671,095
Pretax margin		2.20%	12.64%	13.20%	13.35%	14.08%	14.18%	14.48%	15.09%	15.02%	14.10%	14.51%	14.36%	13.67%	14.49%	15.66%	15.51%	15.60%	13.77%	11.75%	10.92%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $90,026K ÷ $4,086,133K
= 2.20%

The pretax margin of Charles River Laboratories has shown fluctuations over the periods from March 31, 2020, to December 31, 2024. The trend indicates an initial increase from 10.92% in March 2020 to a peak of 15.66% in June 2021. Subsequently, there was a slight decline in the pretax margin to 13.67% by December 2021.

From March 2022 onwards, there was a fluctuating pattern with the pretax margin ranging between 13.35% to 15.09% until March 2023. However, from June 30, 2023, the pretax margin started to decline steadily, reaching 12.64% by September 30, 2024, and significantly dropping to 2.20% by December 31, 2024.

The decreasing trend from June 2023 to December 2024 raises concerns about the company's ability to maintain profitability before tax. Further analysis is recommended to identify the factors contributing to this decline and to implement strategies to improve and stabilize the pretax margin in the future.