Ichor Holdings Ltd (ICHR)

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	-31,078	-4,873	34,624	65,941	75,330	75,825	66,131	66,452	73,756	71,465	61,889	45,287	32,291	23,580	14,044	7,287	4,275	4,625	13,002	36,552
Revenue (ttm)	US$ in thousands	791,741	890,431	1,051,200	1,198,719	1,269,013	1,256,502	1,165,476	1,118,696	1,089,729	1,047,699	1,011,957	950,502	905,509	849,443	775,610	692,781	610,190	562,064	582,925	693,162
Pretax margin		-3.93%	-0.55%	3.29%	5.50%	5.94%	6.03%	5.67%	5.94%	6.77%	6.82%	6.12%	4.76%	3.57%	2.78%	1.81%	1.05%	0.70%	0.82%	2.23%	5.27%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-31,078K ÷ $791,741K
= -3.93%

The pretax margin of Ichor Holdings Ltd has shown fluctuations over the past several quarters. It ranged from a low of -3.93% in December 2023 to a high of 6.82% in September 2021. The trend seems to be somewhat volatile, with occasional dips and peaks.

The company's pretax margin indicates the portion of each dollar of revenue that translates into pre-tax profit. A negative pretax margin, such as the one recorded in December 2023, signifies that the company incurred more costs than it generated in revenue during that period. This could be a cause for concern as it suggests a potential for operating inefficiencies or challenges in managing costs.

Conversely, positive pretax margins, like those observed in most quarters, are generally favorable as they indicate the company is generating profits before accounting for taxes. However, the declining trend in pretax margins towards the most recent quarters may be a point of attention, as it could signal a reduced ability to generate profits relative to revenue.

Overall, a thorough examination of the factors influencing revenue generation and cost management would be necessary to understand the underlying reasons for the fluctuating pretax margins and to determine the company's financial performance sustainability.