Smart Global Holdings Inc (SGH)

Pretax margin

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-245,485	-262,998	-236,729	-19,268	27,752	66,731	84,631	88,947	56,479	53,479	30,999	12,670	7,491	996	3,378	2,348	28,158	66,204	91,297	126,253
Revenue (ttm)	US$ in thousands	1,233,638	1,360,769	1,552,734	1,598,535	1,700,746	1,758,024	1,764,196	1,888,093	1,862,989	1,718,489	1,559,283	1,371,659	1,193,744	1,160,383	1,134,618	1,092,825	1,123,015	1,259,316	1,354,886	1,462,059
Pretax margin		-19.90%	-19.33%	-15.25%	-1.21%	1.63%	3.80%	4.80%	4.71%	3.03%	3.11%	1.99%	0.92%	0.63%	0.09%	0.30%	0.21%	2.51%	5.26%	6.74%	8.64%

March 1, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-245,485K ÷ $1,233,638K
= -19.90%

The pretax margin of Smart Global Holdings Inc has fluctuated over the past couple of years. From March 1, 2019, to March 1, 2024, the pretax margin ranged from a low of -19.90% to a high of 8.64%. The company experienced negative pretax margins in some quarters, indicating that its operating expenses and interest payments exceeded its gross profit. However, the company managed to improve its performance over the period, with pretax margins gradually increasing from negative levels to above 5% in some instances.

The trend suggests that Smart Global Holdings Inc has been working towards improving its operational efficiency and controlling costs, leading to a more favorable pretax margin. It is essential for the company to sustain this positive momentum to ensure long-term profitability and financial stability. Additionally, investors and stakeholders may monitor the pretax margin closely to assess the company's ability to generate profits before accounting for taxes and interest expenses.