Semtech Corporation (SMTC)

Pretax margin

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-1,041,511	-455,887	-388,253	774	78,724	179,972	188,344	160,623	141,203	116,609	99,231	79,044	63,340	53,894	50,517	48,535	48,419	74,455	68,476	86,000
Revenue (ttm)	US$ in thousands	772,917	763,303	767,436	779,319	763,414	792,738	810,086	767,944	735,907	709,482	668,860	627,430	589,413	565,090	550,841	542,981	674,392	696,397	904,517	1,096,236
Pretax margin		-134.75%	-59.73%	-50.59%	0.10%	10.31%	22.70%	23.25%	20.92%	19.19%	16.44%	14.84%	12.60%	10.75%	9.54%	9.17%	8.94%	7.18%	10.69%	7.57%	7.85%

January 28, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,041,511K ÷ $772,917K
= -134.75%

The pretax margin of Semtech Corporation has fluctuated over the past several quarters. It started with a negative margin of -134.75% in January 2024, which improved to -59.73% in October 2023 and further improved to -50.59% in July 2023. The company then managed to achieve a positive pretax margin of 0.10% in April 2023, which increased to 10.31% in January 2023, indicating a strong improvement in profitability.

Subsequently, the pretax margin remained above 20% for a few quarters, with peaks of 23.25% in July 2022 and 22.70% in October 2022. However, the margin started to decrease gradually, reaching 7.18% in January 2020. There was a small recovery to 10.69% in April 2020 but declined again to 7.57% in July 2020. The margin then slightly improved to 7.85% in October 2020 before showing further improvements in subsequent periods.

Overall, the trend in Semtech Corporation's pretax margin shows both volatility and periods of profitability, with efforts to enhance operational efficiency and control costs evident in the varying margins reported.