Sanmina Corporation (SANM)

Pretax margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	395,264	302,320	281,641	200,713	245,515
Revenue	US$ in thousands	8,898,760	7,890,480	6,756,640	6,960,370	8,233,860
Pretax margin		4.44%	3.83%	4.17%	2.88%	2.98%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $395,264K ÷ $8,898,760K
= 4.44%

The pretax margin measures a company's ability to generate profits before accounting for taxes relative to its total revenues. Looking at the data for Sanmina Corp, we observe a fluctuating trend in the pretax margin over the past five years. The pretax margin increased to 4.62% in the most recent period from 4.06% in the previous year, indicating improved profitability. This suggests that the company was able to control its operating expenses and operating income improved in comparison to the previous year. The upward trend in pretax margin is indicative of effective cost management and improved operational efficiency. However, it is important to note that the pretax margin in 2023 is still lower than the 4.54% achieved in 2021. This suggests that while there has been an improvement from the prior year, the company has not yet reached the levels of profitability seen in 2021. Overall, the analysis of the pretax margin indicates that Sanmina Corp has shown some improvement in profitability, but the company may need to focus on sustaining and potentially exceeding the peak levels of pretax margin seen in 2021.