Korn Ferry (KFY)
Pretax margin
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 344,912 | 222,642 | 295,737 | 432,901 | 163,700 |
| Revenue | US$ in thousands | 2,761,090 | 2,795,500 | 2,863,840 | 2,643,460 | 1,819,950 |
| Pretax margin | 12.49% | 7.96% | 10.33% | 16.38% | 8.99% |
April 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $344,912K ÷ $2,761,090K
= 12.49%
The pretax margin for Korn Ferry has exhibited notable fluctuations over the analyzed period, reflecting variations in profitability relative to revenue before tax expenses. As of April 30, 2021, the pretax margin was approximately 8.99%, indicating a relatively modest level of pre-tax profitability. This margin increased substantially in the following year to 16.38% as of April 30, 2022, representing a significant improvement in pre-tax profitability, which could be attributed to factors such as increased revenues, reduced operating costs, or improved operational efficiency.
However, this elevated margin was not sustained, as evidenced by the decline to 10.33% by April 30, 2023. This reduction suggests some margin compression, potentially stemming from rising costs, competitive pressures, or changes in revenue mix. The decreasing trend continued into the year ending April 30, 2024, where the pretax margin further contracted to 7.96%, reverting closer to the levels seen in 2021, possibly indicating ongoing challenges in maintaining higher profitability margins.
Despite this decline, an improvement is observed in the subsequent year ending April 30, 2025, with the pretax margin increasing to 12.49%. This rebound could imply targeted improvements in cost management or favorable shifts in revenue streams, enhancing pre-tax profitability. Overall, the pretax margin over this period demonstrates significant variability, influenced by internal operational factors and market conditions, with each cycle reflecting the company's evolving profitability dynamics.
Peer comparison
Apr 30, 2025