Liquidity Services Inc (LQDT)

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	26,690	29,018	31,384	40,945	48,156	47,654	44,487	34,744	27,382	27,579	24,955	16,529	6,667	-2,882	-13,610	-18,139	-17,978	-17,996	-24,948	-23,934
Revenue (ttm)	US$ in thousands	317,224	317,482	311,747	299,959	286,259	280,398	275,343	275,513	269,007	258,140	243,702	221,755	213,011	206,885	209,785	219,114	223,264	227,760	221,675	214,955
Pretax margin		8.41%	9.14%	10.07%	13.65%	16.82%	17.00%	16.16%	12.61%	10.18%	10.68%	10.24%	7.45%	3.13%	-1.39%	-6.49%	-8.28%	-8.05%	-7.90%	-11.25%	-11.13%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $26,690K ÷ $317,224K
= 8.41%

The pretax margin for Liquidity Services Inc has shown fluctuation over the past eight quarters. The pretax margin decreased from 16.86% in Q1 2023 to 8.51% in Q1 2024, indicating a significant decline in profitability. This downward trend continued in Q4 2023 with a pretax margin of 9.23%.

However, there was a slight improvement in profitability in Q3 2023 and Q2 2023 with pretax margins of 10.13% and 13.70% respectively. The highest pretax margin during this period was in Q1 2023 at 16.86%, followed closely by Q4 2022 at 17.02%.

Overall, the data suggests that Liquidity Services Inc has experienced some fluctuations in pretax margin over the past eight quarters, with profitability varying from as high as 17.02% to as low as 8.51%. It would be important for the company to assess the factors contributing to these fluctuations and implement strategies to improve and stabilize their pretax margin in the future.