Kelly Services A Inc (KELYA)

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	24,900	24,300	1,400	2,900	-70,400	13,100	80,200	94,500	191,200	129,300	98,900	119,500	-106,000	-120,800	-159,600	-105,100	112,800	54,000	116,300	-11,200
Revenue (ttm)	US$ in thousands	4,835,500	3,861,600	3,911,600	2,700,700	1,433,300	2,422,100	2,449,600	3,702,000	4,906,200	4,897,300	4,739,800	4,458,800	4,516,300	4,613,700	4,843,900	5,235,600	5,355,600	5,432,500	5,507,200	5,526,600
Pretax margin		0.51%	0.63%	0.04%	0.11%	-4.91%	0.54%	3.27%	2.55%	3.90%	2.64%	2.09%	2.68%	-2.35%	-2.62%	-3.29%	-2.01%	2.11%	0.99%	2.11%	-0.20%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $24,900K ÷ $4,835,500K
= 0.51%

To analyze Kelly Services, Inc.'s pretax margin, we observe a fluctuating trend over the past eight quarters. The pretax margins range from a low of -1.42% in Q4 2022 to a high of 1.89% in Q1 2022. Q2 and Q3 of 2023 showed marginal pretax margins of 0.03% and 0.50%, respectively, followed by a slight increase to 0.51% in Q4 2023.

The positive pretax margins in Q1 and Q2 of 2022 indicate effective cost management or revenue generation strategies during those periods. However, the margins dipped below zero in Q4 2022, suggesting potential challenges or increased expenses impacting profitability.

Overall, while the recent pretax margins have shown some improvement, it is essential for Kelly Services, Inc. to sustain or enhance these margins to ensure long-term profitability and financial health. Further monitoring and analysis of operating expenses, revenue generation, and overall business performance could provide insights into maintaining or improving pretax margins in the future.