Simulations Plus Inc (SLP)

Pretax margin

		Aug 31, 2024	May 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	13,114	11,184	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
Revenue (ttm)	US$ in thousands	72,188	68,509	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
Pretax margin		18.17%	16.32%	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%

August 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $13,114K ÷ $72,188K
= 18.17%

The pretax margin of Simulations Plus Inc has shown some fluctuations over the past few years, based on the data provided. The pretax margin represents the company's profitability before accounting for taxes, indicating the efficiency of its operations in generating profits.

The pretax margin ranged from a low of 16.32% in May 2024 to a high of 31.44% in November 2019. In general, the pretax margin has been relatively stable, staying within the range of 16% to 31% over the periods analyzed.

A higher pretax margin percentage suggests that the company is efficient in managing its costs relative to its revenues. It indicates that Simulations Plus Inc is generating a healthy level of profit before accounting for taxes.

The upward trend observed in the pretax margin from August 2020 to November 2022 indicates an improvement in the company's profitability during that period. However, there was a slight decline in the pretax margin in the most recent period ending August 2024 compared to the previous quarter.

Overall, while the pretax margin of Simulations Plus Inc has fluctuated over time, it generally reflects a stable and profitable performance, showcasing the company's ability to generate profits before tax expenses.