Leslies Inc (LESL)
Pretax margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -13,278 | 36,741 | 208,117 | 163,129 |
| Revenue | US$ in thousands | 1,330,120 | 1,385,770 | 1,531,880 | 1,299,340 |
| Pretax margin | -1.00% | 2.65% | 13.59% | 12.55% |
September 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-13,278K ÷ $1,330,120K
= -1.00%
The pretax margin of Leslies Inc has shown a declining trend over the past four years based on the provided data. In September 2021, the pretax margin was at its peak at 13.59%, indicating that for every dollar of sales, the company was earning 13.59 cents before taxes. However, there was a significant drop in the pretax margin in September 2022 to 12.55%, but it was still relatively healthy.
From September 2022 onwards, the pretax margin experienced a more noticeable decrease. By September 2024, the pretax margin had turned negative at -1.00%, signaling that the company's expenses exceeded its operating profit. This negative pretax margin indicates a potential concern regarding the company's ability to generate profits before accounting for taxes.
The declining trend in the pretax margin should prompt further investigation into the factors contributing to the decrease. It could be a result of various factors such as rising expenses, declining sales, or pricing pressures. Leslies Inc may need to implement cost-saving measures, improve operational efficiency, or adjust pricing strategies to reverse this negative trend and improve profitability.
Peer comparison
Sep 30, 2024