Korn Ferry (KFY)
Pretax margin
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 341,899 | 328,503 | 243,647 | 222,642 | 203,970 | 155,464 | 256,580 | 295,737 | 346,659 | 438,411 | 437,387 | 432,901 | 404,217 | 365,025 | 303,503 | 163,700 | 78,556 | 35,495 | 53,332 | 150,962 |
| Revenue (ttm) | US$ in thousands | 2,741,182 | 2,741,517 | 2,772,004 | 2,795,505 | 2,833,706 | 2,843,678 | 2,866,950 | 2,863,836 | 2,852,715 | 2,850,826 | 2,758,505 | 2,643,455 | 2,473,846 | 2,266,770 | 2,061,161 | 1,819,946 | 1,711,528 | 1,761,627 | 1,828,015 | 1,977,330 |
| Pretax margin | 12.47% | 11.98% | 8.79% | 7.96% | 7.20% | 5.47% | 8.95% | 10.33% | 12.15% | 15.38% | 15.86% | 16.38% | 16.34% | 16.10% | 14.72% | 8.99% | 4.59% | 2.01% | 2.92% | 7.63% |
January 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $341,899K ÷ $2,741,182K
= 12.47%
The pretax margin of Korn Ferry exhibits notable fluctuations over the analyzed period from April 2020 through January 2025. Initially, the pretax margin was 7.63% as of April 30, 2020, subsequently declining to a low of 2.01% by October 31, 2020, suggestive of margin compression amidst early pandemic challenges. This decline is followed by a recovery phase, with margins rising significantly, reaching 8.99% by April 2021 and then substantially increasing to 16.10% by October 2021, indicative of improved operational efficiency or revenue growth.
The margin remained relatively stable through 2022, oscillating around 15.8% to 16.4%, reflecting operational stability during this period. However, a downward trend is observed beginning in early 2023, with the pretax margin decreasing to 12.15% by January 2023 and further declining to approximately 5.47% by October 2023. This decline may be attributable to increased costs, competitive pressures, or changes in revenue mix.
Subsequent quarters demonstrate signs of recovery, with margins rising to 7.20% in January 2024, followed by modest increases to 8.79% in July 2024 and 11.98% in October 2024. The trend extends into January 2025, with the pretax margin reaching 12.47%, signaling a potential rebound or improved profitability trajectory.
Overall, the pretax margin of Korn Ferry has experienced periods of volatility, with sharp declines and recoveries corresponding to broader economic conditions, operational factors, or strategic shifts. The recent upward trend suggests an ongoing improvement in profitability margins following earlier periods of compression.
Peer comparison
Jan 31, 2025