Graham Holdings Co (GHC)

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	1,024,710	339,708	214,968	395,666	299,004	257,557	315,731	61,745	121,734	193,474	180,817	427,758	449,627	664,487	738,758	640,594	407,268	274,642	224,753	237,886
Revenue (ttm)	US$ in thousands	4,790,900	4,711,910	4,616,270	4,535,990	4,414,880	4,312,100	4,213,020	4,041,322	3,924,493	3,723,394	3,520,390	3,388,240	3,185,974	3,110,054	3,017,600	2,869,319	2,889,121	2,865,588	2,887,426	2,972,157
Pretax margin		21.39%	7.21%	4.66%	8.72%	6.77%	5.97%	7.49%	1.53%	3.10%	5.20%	5.14%	12.62%	14.11%	21.37%	24.48%	22.33%	14.10%	9.58%	7.78%	8.00%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,024,710K ÷ $4,790,900K
= 21.39%

The pretax margin of Graham Holdings Co has exhibited fluctuations over the past few years, as per the provided data. The trend shows variability in the company's ability to generate profits before accounting for taxes in relation to its total revenue.

1. From March 31, 2020, to December 31, 2020, there was a significant increase in the pretax margin, reaching a peak of 14.10%, suggesting an improvement in the company's operational efficiency and cost management during this period.

2. Subsequently, in the first half of 2021, the pretax margin experienced a notable surge, peaking at 24.48% by June 30, 2021. This indicates a period of strong profitability and effective control over operating expenses.

3. However, there was a decline in profitability towards the end of 2021, with the pretax margin dropping to 14.11% by December 31, 2021, and further decreasing to 3.10% by the end of December 2022. These decreases may suggest challenges or increased costs impacting the company's profitability.

4. The pretax margin slightly recovered by the first half of 2023, reaching 8.72% by March 31, but it dipped again to 4.66% by June 30, 2024. The inconsistency in profitability during this period indicates potential fluctuations in revenue or cost structures affecting the company.

5. By December 31, 2024, the pretax margin surged to 21.39%, marking a significant rebound in profitability compared to the preceding quarters. This upturn could be reflective of improved operational performance, cost efficiencies, or revenue growth at the end of the period.

Overall, the pretax margin of Graham Holdings Co reflects a dynamic financial performance characterized by both peaks and troughs over the analyzed period, indicating fluctuations in profitability and operational efficiency within the company.