FormFactor Inc (FORM)

Pretax margin

		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	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	51,063	38,273	37,491	39,030
Revenue (ttm)	US$ in thousands	732,076	662,117	669,597	715,987	745,371	785,746	794,842	779,014	768,638	761,607	749,597	719,290	693,331	674,206	636,585	616,428	587,310	549,284	543,314	540,417
Pretax margin		12.19%	-1.25%	-1.17%	3.48%	7.76%	13.43%	15.50%	14.12%	12.81%	11.52%	11.59%	12.42%	12.28%	13.08%	11.88%	10.10%	8.69%	6.97%	6.90%	7.22%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $89,267K ÷ $732,076K
= 12.19%

FormFactor Inc's pretax margin has shown some variability over the past few quarters. The pretax margin measures the company's profitability before taxes relative to its total revenue.

In the most recent quarter, ending December 31, 2023, the pretax margin stood at 12.19%, showing a healthy profitability level. However, it is important to note that the pretax margin dipped into negative territory in the previous two quarters, which could indicate challenges in managing costs or generating sufficient revenue.

Looking at a longer trend, the pretax margin has generally shown a positive trend over the past few years, with occasional fluctuations. The company experienced a peak in the pretax margin in the quarter ending June 30, 2022, at 15.50%.

Overall, FormFactor Inc's pretax margin performance suggests that the company has been able to maintain a reasonable level of profitability, but attention may be required to manage costs and revenue generation consistently to ensure sustained profitability in future periods.