Plexus Corp (PLXS)
Pretax margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 129,532 | 161,013 | 158,303 | 160,411 | 135,397 |
| Revenue | US$ in thousands | 8,035,580 | 8,496,620 | 7,722,450 | 6,834,190 | 6,875,610 |
| Pretax margin | 1.61% | 1.90% | 2.05% | 2.35% | 1.97% |
September 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $129,532K ÷ $8,035,580K
= 1.61%
Plexus Corp's pretax margin, a key profitability metric, has shown a fluctuating trend over the past five years. The pretax margin indicates the company's ability to generate profits before accounting for taxes on every dollar of revenue.
In 2020, Plexus Corp had a pretax margin of 1.97%, which slightly improved to 2.35% in 2021. However, in 2022, the pretax margin decreased to 2.05% before experiencing a further decline to 1.90% in 2023. The trend continued downward in 2024, with the pretax margin dropping to 1.61%, marking the lowest value in the five-year period.
The declining pretax margin could suggest potential challenges in managing costs and operational efficiency, impacting the company's overall profitability. It is essential for the company to analyze and address the underlying factors contributing to the decreasing pretax margin to ensure sustainable profitability in the future.
Peer comparison
Sep 30, 2024