Harmonic Inc (HLIT)

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 57,933 10,646 -27,039 -1,578 19,141 25,664 44,565 53,501 44,485 41,617 34,067 15,464 8,871 9,829 2,762 -10,420 -26,217 -35,726 -18,871 -16,196
Revenue (ttm) US$ in thousands 678,722 623,648 555,095 572,318 607,907 605,149 633,684 635,167 624,957 616,427 587,010 543,012 507,149 482,873 451,444 411,990 378,831 369,481 390,314 401,185
Pretax margin 8.54% 1.71% -4.87% -0.28% 3.15% 4.24% 7.03% 8.42% 7.12% 6.75% 5.80% 2.85% 1.75% 2.04% 0.61% -2.53% -6.92% -9.67% -4.83% -4.04%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $57,933K ÷ $678,722K
= 8.54%

Pretax margin, a key financial metric indicating a company's profitability before taxes, reflects Harmonic Inc's ability to generate operating profits relative to its total revenue.

Harmonic Inc's pretax margin experienced volatility over the reviewed period, starting at a negative level in 2020 and gradually improving in the following years. The margin was notably negative in the first half of 2020, indicating challenges in profitability during that period. Subsequently, there was a positive turnaround in the last two quarters of 2020, and the trend of improvement continued through 2021 and 2022.

From March 31, 2022, to December 31, 2024, Harmonic Inc demonstrated consistent growth in pretax margin, reaching its peak of 8.54% by the end of December 2024. This positive trend suggests enhanced operational efficiency and effective cost management within the company.

However, in the interim periods, particularly in June 2024, there was a significant decline in pretax margin, slipping back into negative territory briefly before recovering in the subsequent quarters.

Overall, Harmonic Inc's pretax margin trended positively in the latter half of the review period, indicating an improvement in profitability and operational performance. It is essential for investors and stakeholders to closely monitor the company's financial health and sustainability of this upward trajectory.