Simulations Plus Inc (SLP)

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	12,234	12,050	11,262	13,916	13,810	14,275	16,513	14,398	14,055	11,945	11,085	12,948	12,237	11,650	11,387	11,335	11,408	11,267	10,556	10,411
Revenue (ttm)	US$ in thousands	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836	33,971	32,633
Pretax margin		18.92%	19.40%	18.90%	24.99%	25.38%	26.71%	30.63%	27.68%	28.21%	24.79%	23.86%	28.05%	26.79%	27.16%	27.38%	28.28%	30.25%	31.44%	31.07%	31.90%

February 29, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $12,234K ÷ $64,668K
= 18.92%

Simulations Plus Inc has demonstrated a relatively stable and strong pretax margin over the past few quarters, ranging between 18.90% to 31.90%. The company's pretax margin measures its efficiency in generating profits before accounting for taxes, with higher percentages indicating better operational performance.

The pretax margin peaked at 31.90% in the first quarter of 2020 and has since fluctuated within a narrower range. This suggests that the company has been able to effectively manage its expenses and generate consistent profits relative to its revenue. However, the slight decline in the pretax margin in the most recent quarter compared to the previous quarters may warrant further analysis to understand the underlying factors influencing profitability.

Overall, the trend in Simulations Plus Inc's pretax margin indicates that the company has been maintaining a healthy level of profitability, but analysts and investors may need to monitor future developments to assess the sustainability of this performance.