Progress Software Corporation (PRGS)

Pretax margin

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	77,340	79,657	92,261	98,991	121,227	117,255	104,678	116,503	96,722	95,534	97,962	88,686	94,084	96,635	70,431	52,442	42,404	28,495	46,914	51,814
Revenue (ttm)	US$ in thousands	714,898	694,439	674,596	650,821	621,317	602,013	585,014	581,214	554,955	531,313	513,570	475,852	453,747	442,150	436,803	433,820	433,432	413,298	394,364	383,331
Pretax margin		10.82%	11.47%	13.68%	15.21%	19.51%	19.48%	17.89%	20.04%	17.43%	17.98%	19.07%	18.64%	20.73%	21.86%	16.12%	12.09%	9.78%	6.89%	11.90%	13.52%

February 29, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $77,340K ÷ $714,898K
= 10.82%

Progress Software Corporation's pretax margin has shown fluctuations over the past several quarters. The pretax margin for the most recent quarter, ending Feb 29, 2024, stood at 10.82%, which is a slight decrease compared to the prior quarter's 11.47%. However, this figure is notably lower compared to the pretax margins observed in earlier periods, such as 19.51% for the quarter ending Feb 28, 2023, and 20.73% for the quarter ending Feb 28, 2021.

The trend in pretax margin indicates some variability in the company's ability to generate profits before accounting for taxes. It is essential to explore further factors influencing this metric, such as revenue growth, operating expenses, and the effectiveness of cost control measures, to assess the sustainability and efficiency of Progress Software Corporation's earnings generation.

Overall, a declining pretax margin may raise concerns about the company's profitability and operational efficiency, emphasizing the need for a closer examination of its financial performance and strategic initiatives.