IPG Photonics Corporation (IPGP)

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	274,875	152,678	181,512	173,007	182,498	346,882	352,418	371,307	367,031	347,950	288,356	245,734	204,926	142,480	177,369	223,545	248,349	346,494	396,944	464,900
Revenue (ttm)	US$ in thousands	1,287,439	1,322,085	1,369,690	1,406,742	1,429,547	1,460,475	1,490,619	1,485,254	1,460,860	1,433,023	1,372,314	1,297,067	1,200,724	1,170,721	1,181,418	1,248,776	1,314,581	1,338,004	1,365,212	1,415,056
Pretax margin		21.35%	11.55%	13.25%	12.30%	12.77%	23.75%	23.64%	25.00%	25.12%	24.28%	21.01%	18.95%	17.07%	12.17%	15.01%	17.90%	18.89%	25.90%	29.08%	32.85%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $274,875K ÷ $1,287,439K
= 21.35%

IPG Photonics Corp's pretax margin has exhibited fluctuations over the past eight quarters. In Q4 2023, the pretax margin stood at 21.35%, significantly higher than the previous quarter's figure of 11.55% in Q3 2023. This increase indicates an improvement in the company's ability to generate profits before accounting for taxes.

Comparing Q4 2023 to the same quarter in the previous year, there was a slight increase from 12.83% in Q4 2022 to 21.35% in Q4 2023. This suggests a positive trend in the company's profitability performance over the year.

However, it is worth noting that in the preceding quarters, the pretax margin displayed some variability without a consistent increasing or decreasing trend. For instance, in Q3 2022 and Q2 2022, the pretax margin was relatively high at 23.82% and 23.64%, respectively, before slightly declining in subsequent quarters.

Overall, while IPG Photonics Corp's pretax margin has demonstrated fluctuations, the recent increase in Q4 2023 compared to both the previous quarter and the same quarter in the prior year indicates an improvement in the company's profitability before taxes. Further analysis would be needed to assess the underlying factors driving these changes and their sustainability.