DXC Technology Co (DXC)
Pretax margin
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 630,000 | 109,000 | -885,000 | 1,141,000 | 654,000 |
| Revenue | US$ in thousands | 12,871,000 | 13,667,000 | 14,430,000 | 16,265,000 | 17,729,000 |
| Pretax margin | 4.89% | 0.80% | -6.13% | 7.02% | 3.69% |
March 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $630,000K ÷ $12,871,000K
= 4.89%
The pretax margin of DXC Technology Co has fluctuated over the past five years. In March 2021, the pretax margin was 3.69%, indicating that for every dollar of revenue generated, the company retained 3.69 cents before accounting for taxes. This margin improved significantly to 7.02% by March 2022, reflecting better cost management or increased revenue generation.
However, a notable downturn occurred by March 2023, where the pretax margin dropped to -6.13%, implying that the company experienced a loss before accounting for taxes. This negative margin could be attributed to a variety of factors such as high expenses or a decrease in revenue.
By March 2024, the pretax margin recovered slightly to 0.80%, indicating a small profit before tax. This improvement may suggest that the company implemented strategies to enhance profitability or streamline operations.
In the most recent period, March 2025, the pretax margin rose to 4.89%, reflecting a further improvement in the company's ability to generate profits before taxes.
Overall, the fluctuation in DXC Technology Co's pretax margin over the past five years demonstrates the company's changing profitability levels and the importance of closely monitoring financial performance metrics to understand the factors driving these fluctuations.
Peer comparison
Mar 31, 2025