Calavo Growers Inc (CVGW)
Pretax margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -2,402 | -2,998 | -1,071 | -17,917 | 49,528 |
| Revenue | US$ in thousands | 967,829 | 1,188,450 | 1,063,150 | 1,022,360 | 1,197,400 |
| Pretax margin | -0.25% | -0.25% | -0.10% | -1.75% | 4.14% |
October 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-2,402K ÷ $967,829K
= -0.25%
The pretax margin of Calavo Growers, Inc has been fluctuating over the past five years. In 2019, the company reported a healthy pretax margin of 4.14%, indicating strong earning potential before accounting for taxes. However, in 2020, the margin dropped significantly to -1.71%, signaling a sharp decrease in the company's profitability before tax expenses. This was followed by a further decline in 2021 to -0.11%. In 2022, the pretax margin decreased to -0.28%, reflecting continued challenges in generating profits before taxes. The most recent data for 2023 shows a pretax margin of -0.21%, suggesting ongoing difficulties in achieving profitability. Overall, the trend indicates a decline in pretax margin over the years, which may raise concerns about the company's ability to generate earnings before tax obligations.