Forward Air Corporation (FWRD)

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	181,187	148,416	205,699	252,425	260,838	254,408	218,823	185,272	144,731	91,304	78,629	44,473	40,326	71,880	79,586	102,515	114,794	116,562	116,401	119,213
Revenue (ttm)	US$ in thousands	1,571,371	1,711,459	1,809,146	1,923,575	1,965,894	1,946,041	1,856,214	1,761,536	1,655,923	1,547,601	1,460,946	1,323,276	1,269,573	1,238,888	1,220,574	1,241,783	1,215,187	1,252,092	1,269,784	1,297,240
Pretax margin		11.53%	8.67%	11.37%	13.12%	13.27%	13.07%	11.79%	10.52%	8.74%	5.90%	5.38%	3.36%	3.18%	5.80%	6.52%	8.26%	9.45%	9.31%	9.17%	9.19%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $181,187K ÷ $1,571,371K
= 11.53%

The pretax margin of Forward Air Corporation has exhibited fluctuations over the past few quarters, indicating varying levels of profitability before accounting for income taxes. In the most recent quarter, as of December 31, 2023, the pretax margin stood at 11.53%, showing a slight increase from the previous quarter.

Looking back further, there was a notable decline in pretax margin from the peak of 13.27% in March 2022 to the low of 3.18% in March 2021. However, since then, the company has shown an improving trend in profitability before taxes.

It is essential for stakeholders to monitor the pretax margin closely to assess the company's operational efficiency and cost management. The fluctuations in pretax margin can reflect changes in sales volume, pricing strategies, cost structures, or efficiency levels within the organization. Further analysis would be beneficial to identify the underlying factors driving these fluctuations and to determine the sustainability of the company's profitability levels in the future.