Carpenter Technology Corporation (CRS)

Pretax margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	211,600	72,500	-63,100	-297,900	6,100
Revenue	US$ in thousands	2,756,100	2,495,100	1,783,200	1,431,400	2,164,000
Pretax margin		7.68%	2.91%	-3.54%	-20.81%	0.28%

June 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $211,600K ÷ $2,756,100K
= 7.68%

The pretax margin of Carpenter Technology Corporation has shown fluctuations over the past five years. In the latest fiscal year ending June 30, 2024, the pretax margin improved significantly to 7.68%, indicating that the company was able to generate a higher level of operating income relative to its total revenue. This positive trend suggests potential improvements in the company's cost management, pricing strategies, or operational efficiency.

In the preceding year, ending June 30, 2023, the pretax margin was 2.91%, showing a moderate increase compared to the prior year. However, in fiscal year 2022, the pretax margin was negative at -3.54%, which may raise concerns about the company's profitability and operational performance during that period.

Furthermore, in fiscal year 2021, the company experienced a significant decline in pretax margin to -20.81%, indicating a substantial loss before accounting for income tax expenses. This sharp drop might be attributed to various factors such as increased costs, declining revenues, or one-time charges impacting profitability negatively.

Lastly, in fiscal year 2020, Carpenter Technology Corporation achieved a pretax margin of 0.28%, showing a slight positive result, although relatively low compared to other years in the analysis. Overall, the fluctuating pretax margins in the past five years highlight the company's changing financial performance and emphasize the importance of monitoring and analyzing financial metrics to assess its operational efficiency and profitability over time.