Progress Software Corporation (PRGS)

Pretax margin

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	79,657	117,255	95,534	96,635	28,495
Revenue	US$ in thousands	694,439	602,013	531,313	442,150	413,298
Pretax margin		11.47%	19.48%	17.98%	21.86%	6.89%

November 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $79,657K ÷ $694,439K
= 11.47%

The pretax margin of Progress Software Corp. has fluctuated over the past five years. In 2023, the pretax margin was 11.47%, showing a decline from the previous year's 19.48%. This decrease indicates a potential reduction in the company's profitability before accounting for taxes. Despite this decline, the pretax margin in 2023 remains within a reasonable range compared to earlier years, such as 2021 and 2020, which stood at 17.98% and 21.86% respectively. However, the 2019 pretax margin was notably lower at 6.89%. This suggests that the company has experienced variability in its profitability before tax in recent years. Further analysis of the company's financial performance and operating efficiency may provide insights into the factors influencing these fluctuations.