DXC Technology Co (DXC)
Pretax margin
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 114,000 | -733,000 | -861,000 | -936,000 | -887,000 | 1,064,000 | 1,126,000 | 824,000 | 1,123,000 | -454,000 | 1,357,000 | 1,302,000 | 651,000 | -2,118,000 | -3,972,000 | -5,671,000 | -5,239,000 | -1,326,000 | -980,000 | 1,358,000 |
| Revenue (ttm) | US$ in thousands | 13,667,000 | 13,872,000 | 14,039,000 | 14,169,000 | 14,430,000 | 14,847,000 | 15,370,000 | 15,831,000 | 16,265,000 | 16,642,000 | 16,841,000 | 17,368,000 | 17,729,000 | 18,159,000 | 18,892,000 | 19,189,000 | 19,577,000 | 20,042,000 | 20,199,000 | 20,361,000 |
| Pretax margin | 0.83% | -5.28% | -6.13% | -6.61% | -6.15% | 7.17% | 7.33% | 5.20% | 6.90% | -2.73% | 8.06% | 7.50% | 3.67% | -11.66% | -21.02% | -29.55% | -26.76% | -6.62% | -4.85% | 6.67% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $114,000K ÷ $13,667,000K
= 0.83%
The pretax margin of DXC Technology Co has exhibited significant variability over the past several quarters. In the most recent quarter ending March 31, 2024, the pretax margin stood at 0.83%, indicating a modest profitability before taxes. This is a notable improvement compared to the preceding quarter where the company reported a negative pretax margin of -5.28% in December 2023.
Looking back further, DXC Technology Co experienced a series of negative pretax margins in the quarters leading up to the latest report. The company had reported pretax margins of -6.13% in September 2023, -6.61% in June 2023, and -6.15% in March 2023, reflecting a period of financial challenges.
Prior to this challenging period, DXC Technology Co showed a better performance with positive pretax margins in the range of 5-8% in the quarters between December 2022 and June 2021.
It is essential for investors and stakeholders to closely monitor the company's financial performance and management's strategies to stabilize and improve the pretax margin going forward. Additionally, understanding the factors contributing to the fluctuations in pretax margin will be crucial for making informed decisions regarding DXC Technology Co.
Peer comparison
Mar 31, 2024