IPG Photonics Corporation (IPGP)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands -161,888 274,875 183,351 366,481 205,692
Revenue US$ in thousands 977,134 1,287,440 1,429,550 1,460,860 1,200,720
Pretax margin -16.57% 21.35% 12.83% 25.09% 17.13%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-161,888K ÷ $977,134K
= -16.57%

The pretax margin of IPG Photonics Corporation has exhibited fluctuating trends over the past five years. In December 2020, the pretax margin stood at 17.13%, showing a positive performance. Subsequently, in December 2021, the pretax margin improved significantly to 25.09%, indicating enhanced profitability and efficiency in managing pre-tax expenses. However, in December 2022, a decrease was observed with the pretax margin declining to 12.83%, reflecting a potential decrease in profitability or an increase in pre-tax expenses.

The following year, in December 2023, the pretax margin rebounded to 21.35%, suggesting a recovery in profitability or improved cost management strategies. However, a notable anomaly occurred in December 2024, where the pretax margin sharply dropped to -16.57%. This negative figure indicates that the company reported a pre-tax loss during that period, which may be attributed to various factors like increased expenses, reduced revenue, or non-operating losses.

Overall, the pretax margin of IPG Photonics Corporation has shown a mixed performance in recent years, with fluctuations in profitability levels. It is essential for the company to closely monitor its pre-tax earnings relative to its total revenue to ensure sustainable profitability and financial health in the future.