Digi International Inc (DGII)

Pretax margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	24,918	18,628	8,999	7,463	11,145
Revenue	US$ in thousands	444,849	388,225	308,632	279,271	254,203
Pretax margin		5.60%	4.80%	2.92%	2.67%	4.38%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $24,918K ÷ $444,849K
= 5.60%

The pretax margin for Digi International, Inc. has shown an increasing trend over the past five years, from 4.38% in 2019 to 5.60% in 2023. This indicates that the company has been able to improve its efficiency in generating profits before accounting for taxes. The 2023 pretax margin of 5.60% reflects that 5.60 cents of each dollar in sales is available to cover operating expenses and provide a return to investors before taxes are deducted. This improvement suggests better cost management, pricing strategies, or higher sales volume, contributing to the company's overall financial performance.