Embecta Corp (EMBC)

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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	44,200	56,200	49,300	63,900	105,700	7,400	60,900	130,300	190,800
Revenue (ttm)	US$ in thousands	1,117,100	1,113,300	1,126,900	1,116,800	1,115,200	1,110,600	1,115,600	1,108,100	1,123,300
Pretax margin		3.96%	5.05%	4.37%	5.72%	9.48%	0.67%	5.46%	11.76%	16.99%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $44,200K ÷ $1,117,100K
= 3.96%

The pretax margin of Embecta Corp has experienced fluctuations over the past nine quarters. In the most recent quarter ending September 30, 2024, the pretax margin stood at 3.96%, representing a decrease from the previous quarter's level of 5.05%. This downward trend in profitability may indicate potential challenges in managing operating expenses or generating sufficient revenues to cover costs before accounting for taxes.

Comparing the September 2024 pretax margin to historical data reveals a significant decline from the same quarter in the prior year, where the pretax margin was 9.48%. This suggests a notable decrease in profitability over the past year. Additionally, the current pretax margin is substantially lower than the levels seen in December 2022 (11.76%) and September 2022 (16.99%), indicating a marked decline in profitability over a longer time horizon.

The pretax margin serves as a key indicator of a company's operational efficiency and profitability, reflecting its ability to generate profits from its core business activities before accounting for taxes. The declining trend observed in Embecta Corp's pretax margin signals potential challenges that may require management's attention to improve cost control measures, enhance revenue generation, or optimize operating efficiency to boost profitability in future periods.