EPAM Systems Inc (EPAM)

Pretax margin

		Dec 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	584,412	574,484	516,720	532,956	536,585	610,344	669,638	528,250	507,258	466,045	410,257	524,760	533,392	475,463	444,069	396,984	378,479	361,256	337,261	331,695
Revenue (ttm)	US$ in thousands	4,727,940	4,636,850	4,621,460	4,645,070	4,690,550	4,764,590	4,839,370	4,864,020	4,824,690	4,700,850	4,462,469	4,148,975	3,758,140	3,374,173	3,037,877	2,788,894	2,659,478	2,568,760	2,504,620	2,423,824
Pretax margin		12.36%	12.39%	11.18%	11.47%	11.44%	12.81%	13.84%	10.86%	10.51%	9.91%	9.19%	12.65%	14.19%	14.09%	14.62%	14.23%	14.23%	14.06%	13.47%	13.68%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $584,412K ÷ $4,727,940K
= 12.36%

The pretax margin of EPAM Systems Inc has shown fluctuations over the periods indicated in the data. The pretax margin started at 13.68% in March 31, 2020, and generally increased to reach a peak of 14.62% in June 30, 2021. However, from March 31, 2022, the pretax margin experienced a decreasing trend, hitting a low of 9.19% in June 30, 2022, before gradually recovering to around 12% in the following periods.

Overall, the company has demonstrated a reasonable level of pretax profitability, maintaining its margin above 10% for most of the periods. However, the recent downward trend raises potential concerns about the company's ability to generate consistent levels of profitability before accounting for taxes. Monitoring the pretax margin closely will be important for assessing the company's operational efficiency and financial performance.