Gentex Corporation (GNTX)

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	472,214	510,336	489,361	516,634	504,981	464,536	426,218	382,422	369,722	363,640	367,373	384,380	416,352	492,490	545,492	439,805	411,813	359,945	348,628	482,783
Revenue (ttm)	US$ in thousands	2,313,315	2,360,809	2,328,131	2,338,678	2,299,214	2,203,730	2,121,519	2,001,469	1,918,959	1,845,152	1,751,114	1,715,696	1,731,170	1,841,193	1,916,033	1,717,654	1,687,591	1,601,563	1,604,885	1,843,970
Pretax margin		20.41%	21.62%	21.02%	22.09%	21.96%	21.08%	20.09%	19.11%	19.27%	19.71%	20.98%	22.40%	24.05%	26.75%	28.47%	25.60%	24.40%	22.47%	21.72%	26.18%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $472,214K ÷ $2,313,315K
= 20.41%

Gentex Corporation's pretax margin has shown fluctuations over the past few years, ranging from a low of 19.27% on December 31, 2022, to a high of 28.47% on June 30, 2021. The pretax margin measures the efficiency of the company in controlling its operating expenses relative to its total revenue before accounting for taxes.

The trend of the pretax margin indicates that Gentex Corporation experienced a gradual increase in profitability from March 31, 2020, to June 30, 2021, reaching its peak during that period. However, there was a subsequent decline in the pretax margin until December 31, 2024, where it stood at 20.41%.

The decreasing trend in the pretax margin from the peak in June 2021 could signify challenges in cost management or a decrease in revenue growth relative to expenses. It is essential for the company to closely monitor and address the factors impacting its pretax margin to ensure sustained profitability and operational efficiency.