Digi International Inc (DGII)

Pretax margin

		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	Dec 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	22,858	17,998	14,226	15,633	24,888	29,703	28,397	25,808	18,628	9,622	8,576	8,538	8,999	10,342	8,716	7,643	7,491	5,720	5,462	4,517
Revenue (ttm)	US$ in thousands	424,046	431,157	438,190	441,632	444,849	438,424	429,705	413,274	388,225	361,593	337,155	319,743	308,632	302,695	293,954	290,100	279,271	271,062	261,890	254,207
Pretax margin		5.39%	4.17%	3.25%	3.54%	5.59%	6.77%	6.61%	6.24%	4.80%	2.66%	2.54%	2.67%	2.92%	3.42%	2.97%	2.63%	2.68%	2.11%	2.09%	1.78%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $22,858K ÷ $424,046K
= 5.39%

The pretax margin of Digi International Inc has shown fluctuating trends over the past few years. The pretax margin measures the company's efficiency in generating profits before accounting for taxes on its earnings.

Looking at the data provided, the pretax margin has varied between 1.78% and 6.77% over the last eight quarters. There seems to be some volatility in the pretax margin, with fluctuations observed quarter by quarter. However, the general trend shows a gradual decline in the pretax margin from a high of 6.77% in June 2023 to a low of 2.11% in September 2022, before showing some signs of recovery to 5.39% in September 2024.

This decline in the pretax margin could be due to various factors such as increasing operating expenses, changes in revenue mix, or macroeconomic conditions affecting the company's profitability. It is essential for investors and stakeholders to closely monitor this metric to assess the company's ability to manage costs and generate profits efficiently.