Hexcel Corporation (HXL)

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	117,800	190,800	186,400	189,800	157,900	139,900	120,400	69,200	25,200	-32,900	-94,200	-105,000	-29,300	90,000	235,700	344,800	383,400	382,500	371,900	356,200
Revenue (ttm)	US$ in thousands	1,758,000	1,725,300	1,669,300	1,608,300	1,541,500	1,472,400	1,441,000	1,367,900	1,286,400	1,231,100	1,184,000	1,241,000	1,470,000	1,738,500	2,022,800	2,251,900	2,320,800	2,317,500	2,285,900	2,227,600
Pretax margin		6.70%	11.06%	11.17%	11.80%	10.24%	9.50%	8.36%	5.06%	1.96%	-2.67%	-7.96%	-8.46%	-1.99%	5.18%	11.65%	15.31%	16.52%	16.50%	16.27%	15.99%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $117,800K ÷ $1,758,000K
= 6.70%

To analyze Hexcel Corp.'s pretax margin over the past quarters, we observe a fluctuating trend. In Q4 2023, the pretax margin decreased to 6.58% from the previous quarter's 10.84%, indicating a decline in profitability before tax. This may raise concerns about Hexcel Corp.'s ability to manage pre-tax costs efficiently.

However, the company experienced relatively strong pretax margins in Q1, Q2, and Q3 2023, with figures ranging from 10.93% to 11.54%. These results suggest a favorable performance in managing operating expenses and generating profits before accounting for taxes.

Comparing the most recent quarter to previous year quarters, the pretax margin in Q4 2023 is lower than Q4 2022 but higher than Q1 and Q2 2022. This demonstrates variability in profitability over time, which could be influenced by factors such as changes in revenue, costs, or economic conditions.

In conclusion, Hexcel Corp.'s pretax margin has shown fluctuations in recent quarters, with variations in profitability before tax. It is essential for investors and stakeholders to monitor this metric closely to assess the company's financial health and profitability trends accurately.