Ollie's Bargain Outlet Hldg (OLLI)

Pretax margin

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 265,814 276,321 330,057 308,416 290,664 244,317 197,970 196,138 194,306 208,148 221,990 211,174 200,358 147,245 94,132 80,770 107,726 148,412 161,887 175,036
Revenue (ttm) US$ in thousands 2,271,705 2,253,510 2,385,031 2,286,706 2,257,938 2,123,558 1,989,118 1,968,222 1,947,252 1,982,532 2,017,793 1,976,711 1,935,703 1,838,396 1,741,108 1,729,702 1,812,765 1,861,418 1,792,423 1,769,244
Pretax margin 11.70% 12.26% 13.84% 13.49% 12.87% 11.51% 9.95% 9.97% 9.98% 10.50% 11.00% 10.68% 10.35% 8.01% 5.41% 4.67% 5.94% 7.97% 9.03% 9.89%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $265,814K ÷ $2,271,705K
= 11.70%

Ollie's Bargain Outlet Holdings has experienced fluctuating pretax margins over the past few years, ranging from a low of 4.67% on October 29, 2022, to a high of 13.84% on July 31, 2024. The pretax margin represents the percentage of each dollar of revenue that translates into pre-tax profit, reflecting the company's efficiency in managing its operating expenses relative to its revenue.

The trend in the pretax margin shows improvement over the analyzed period, with an upward trajectory from the latter part of 2022 to mid-2024. This indicates that Ollie's Bargain Outlet Holdings has been able to effectively control its costs and increase profitability before tax. The company's pretax margin peaked at 13.84% on July 31, 2024, suggesting a strong performance in optimizing its operational efficiency during that period.

However, there was a slight decrease in the pretax margin from October 31, 2024, to January 31, 2025, where it declined to 11.70%. This decline may raise concerns about the company's ability to sustain its profitability levels in the short term.

Overall, while Ollie's Bargain Outlet Holdings has shown improvement in its pretax margin over the analyzed period, investors and stakeholders should continue to monitor the company's financial performance to ensure that it maintains or enhances its efficiency in generating profits before tax.