Semtech Corporation (SMTC)

Pretax margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-184,000	-835,677	-1,477,818	-1,350,290	-1,368,598	-1,048,220	-727,922	-721,197	-742,700	-477,385	-122,869	-61,969	61,427	167,629	184,616	196,694	174,526	164,488	154,291	148,360
Revenue (ttm)	US$ in thousands	909,285	851,233	783,447	768,991	735,256	780,680	825,893	861,533	856,675	777,728	741,094	681,058	722,800	764,726	789,257	803,304	782,799	776,380	758,224	752,678
Pretax margin		-20.24%	-98.17%	-188.63%	-175.59%	-186.14%	-134.27%	-88.14%	-83.71%	-86.70%	-61.38%	-16.58%	-9.10%	8.50%	21.92%	23.39%	24.49%	22.30%	21.19%	20.35%	19.71%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-184,000K ÷ $909,285K
= -20.24%

The pretax margin of Semtech Corporation has shown varying levels of profitability over the reported periods. From January 30, 2022, to October 31, 2022, the pretax margin demonstrated a generally positive trend, increasing from 19.71% to 21.92% before experiencing a slight decrease to 21.92%. However, starting from January 29, 2023, the pretax margin turned negative, declining sharply to -186.14% by January 31, 2024. This negative trend continued through the subsequent periods, reaching its lowest point at -188.63% on July 31, 2024. By January 31, 2025, there was a slight improvement as the pretax margin improved to -20.24%.

Overall, the pretax margin trend shifted from positive to negative in the latter reported periods, indicating deteriorating profitability and potential financial challenges faced by Semtech Corporation during these periods. It is crucial for the company to address its declining pretax margin and implement strategic measures to improve profitability and financial performance.