FormFactor Inc (FORM)

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	79,412	149,573	133,783	112,856	89,267	-8,288	-7,820	24,938	57,870	105,525	123,181	109,991	98,500	87,746	86,857	89,300	85,175	88,176	75,647	62,254
Revenue (ttm)	US$ in thousands	763,599	742,279	705,937	664,379	663,102	660,926	670,220	718,211	747,937	786,948	796,043	780,212	769,674	761,719	749,751	719,499	693,616	675,202	637,810	618,004
Pretax margin		10.40%	20.15%	18.95%	16.99%	13.46%	-1.25%	-1.17%	3.47%	7.74%	13.41%	15.47%	14.10%	12.80%	11.52%	11.58%	12.41%	12.28%	13.06%	11.86%	10.07%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $79,412K ÷ $763,599K
= 10.40%

FormFactor Inc's pre-tax margin has shown fluctuations over the periods provided. The pre-tax margin indicates the company's operating efficiency before considering taxes.

From March 31, 2020, to June 30, 2021, the pre-tax margin generally improved, reaching its peak at 14.10% on March 31, 2022. This improvement may suggest better cost management or revenue optimization strategies during this period.

However, a significant decline was observed in the following quarters, with pre-tax margins dropping to -1.17% on June 30, 2023, and -1.25% on September 30, 2023. These negative margins indicate that the company's operational costs or other expenses exceeded its revenues before taxes during these periods.

The pre-tax margin recovered strongly in the subsequent quarters, reaching highs of 20.15% on September 30, 2024. This rebound signals potential operational improvements or revenue growth for FormFactor Inc.

It is important for stakeholders to closely monitor the pre-tax margin trend as it provides insights into the company's operational performance and efficiency in generating profits before tax obligations.