Liquidity Services Inc (LQDT)

Pretax margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	29,017	47,653	27,579	-2,973	-18,060
Revenue	US$ in thousands	317,498	280,423	258,046	207,151	227,988
Pretax margin		9.14%	16.99%	10.69%	-1.44%	-7.92%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $29,017K ÷ $317,498K
= 9.14%

The pretax margin of Liquidity Services Inc has fluctuated over the past five years. In Sep 30, 2023, the pretax margin was 9.23%, reflecting a decrease from the previous year's 17.02%. This follows a positive trend from 2019 to 2022, with steady improvements. However, in 2020, the margin was negative at -1.44%, indicating a loss before tax. The drastic increase in 2021 to 10.71% demonstrated a significant recovery. The firm experienced a notable turnaround from negative margins to positive margins, but the recent decrease warrants further investigation to understand the factors impacting profitability.