Graham Holdings Co (GHC)

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	292,588	253,089	312,100	58,627	118,379	190,200	178,506	425,749	448,375	663,835	737,764	640,160	407,665	274,705	225,435	238,462	426,455	310,559	387,278	376,163
Revenue (ttm)	US$ in thousands	4,403,440	4,303,530	4,201,410	3,997,102	3,881,548	3,696,730	3,495,222	3,386,894	3,193,798	3,082,719	2,998,779	2,846,516	2,873,113	2,865,588	2,887,426	2,972,157	2,932,099	2,857,708	2,793,654	2,728,729
Pretax margin		6.64%	5.88%	7.43%	1.47%	3.05%	5.15%	5.11%	12.57%	14.04%	21.53%	24.60%	22.49%	14.19%	9.59%	7.81%	8.02%	14.54%	10.87%	13.86%	13.79%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $292,588K ÷ $4,403,440K
= 6.64%

To analyze Graham Holdings Co.'s pre-tax margin based on the provided data, we observe a fluctuating trend over the eight quarters presented. The pre-tax margin indicates the company's efficiency in generating profits before accounting for taxes relative to its total revenue.

In Q1 2022, the pre-tax margin was notably high, standing at 12.62%, which suggests strong profitability before tax expenses. However, this figure dropped substantially in Q4 2022 to 3.10%, indicating a significant decline in profitability during that period.

Throughout the following quarters, the pretax margin continued to fluctuate. In Q1 2023, the pre-tax margin decreased to 1.53%, representing a sharp decline in profitability. However, the company's performance improved in Q2 2023, with the pre-tax margin expanding to 7.49%, indicating a recovery in profitability levels.

Moving to Q3 2023, we see a slight decrease in the pre-tax margin to 5.97%, followed by a moderate increase to 6.77% in Q4 2023. Overall, the fluctuating trend in the pre-tax margin suggests varying levels of operational efficiency and cost management by Graham Holdings Co. over the evaluated quarters. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's financial performance and potential areas for improvement.