Mercury Systems Inc (MRCY)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -189,275 | -48,542 | 18,395 | 77,173 | 93,933 |
| Revenue | US$ in thousands | 835,275 | 973,882 | 988,197 | 923,996 | 796,610 |
| Pretax margin | -22.66% | -4.98% | 1.86% | 8.35% | 11.79% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-189,275K ÷ $835,275K
= -22.66%
Based on the data provided for Mercury Systems Inc, the pretax margin has displayed a declining trend over the past five years. The pretax margin was -22.66% as of June 30, 2024, which signifies that the company's pre-tax earnings are negative relative to its revenue during that period. This represents a significant decrease compared to the previous year when the pretax margin was -4.98%.
Furthermore, the pretax margin was positive in the two prior years, with values of 1.86% as of June 30, 2022, and 8.35% as of June 30, 2021. However, there has been a noticeable reduction in profitability since then, as indicated by the declining trend.
The pretax margin provides insight into how efficiently Mercury Systems Inc is operating before taxes are taken into account. The negative pretax margins in recent years suggest that the company may be facing challenges in generating profits after accounting for expenses, which could impact its overall financial health and stability. It is essential for the company to closely monitor and address the factors contributing to this decline in pretax margin to improve its profitability and long-term sustainability.
Peer comparison
Jun 30, 2024