Carpenter Technology Corporation (CRS)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	211,500	166,200	180,100	132,600	72,500	29,300	-3,000	-45,700	-63,100	-147,500	-196,400	-257,000	-289,300	-358,700	-251,600	-105,500	6,100	217,100	235,200	229,900
Revenue (ttm)	US$ in thousands	2,756,000	3,797,300	3,802,500	3,757,400	3,628,400	2,335,500	2,122,700	1,929,400	1,783,800	1,653,000	1,518,600	1,473,100	1,423,200	1,447,900	1,686,200	1,913,600	2,166,400	2,370,500	2,391,900	2,373,400
Pretax margin		7.67%	4.38%	4.74%	3.53%	2.00%	1.25%	-0.14%	-2.37%	-3.54%	-8.92%	-12.93%	-17.45%	-20.33%	-24.77%	-14.92%	-5.51%	0.28%	9.16%	9.83%	9.69%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $211,500K ÷ $2,756,000K
= 7.67%

The pretax margin of Carpenter Technology Corporation has fluctuated over the past several quarters, with a general trend of improvement in profitability. The pretax margin increased from negative figures in late 2021 to positive territory in mid-2022. Since then, the company has managed to maintain positive pretax margins, indicating a better ability to generate profits before accounting for taxes.

The pretax margin shows how well the company is controlling its operating expenses in relation to its revenue, thereby reflecting its operational efficiency and cost management practices. An increasing pretax margin suggests that the company is becoming more profitable per dollar of revenue generated.

Carpenter Technology Corporation's pretax margin has registered significant gains within the last year, culminating in the most recent figure of 7.67% as of June 30, 2024. This indicates that the company is managing its operating expenses effectively while generating healthy levels of revenue, which bodes well for its financial health and ability to generate profits moving forward. Further monitoring of the pretax margin will be crucial to assess the company's ongoing financial performance and profitability.