Fortrea Holdings Inc. (FTRE)

Pretax margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -332,000 -310,800 -283,500 -116,900
Revenue (ttm) US$ in thousands 2,646,300 2,690,400 2,756,600 2,905,600
Pretax margin -12.55% -11.55% -10.28% -4.02%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-332,000K ÷ $2,646,300K
= -12.55%

Fortrea Holdings Inc.'s pretax margin has been declining over the course of the fiscal year 2024. The company experienced negative pretax margins of -4.02% in March 31, -10.28% in June 30, -11.55% in September 30, and -12.55% in December 31.

This downward trend in pretax margin indicates that the company's profitability before taking into account taxes and other expenses has been deteriorating. It suggests that Fortrea Holdings Inc. may be facing challenges in generating sufficient operating income to cover its operating costs and financial obligations.

It is essential for the company to closely monitor and address the factors contributing to this declining pretax margin to improve its overall financial performance and sustainability. By enhancing operational efficiency, cost management, and revenue generation strategies, Fortrea Holdings Inc. may be able to reverse this negative trend and ultimately strengthen its profitability position.