Synopsys Inc (SNPS)

Pretax margin

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,499,421	1,313,545	1,115,231	1,030,086	1,076,216	1,121,672	1,106,988	1,081,245	956,839	806,671	799,749	823,012	716,907	639,059	578,216	474,273	498,024	545,506	466,131	405,113
Revenue (ttm)	US$ in thousands	6,130,510	5,842,620	5,527,780	5,288,260	5,172,630	5,081,550	4,949,680	4,759,040	4,504,130	4,204,191	4,077,211	3,984,215	3,821,222	3,685,282	3,510,923	3,399,759	3,374,674	3,360,694	3,304,695	3,231,439
Pretax margin		24.46%	22.48%	20.18%	19.48%	20.81%	22.07%	22.36%	22.72%	21.24%	19.19%	19.62%	20.66%	18.76%	17.34%	16.47%	13.95%	14.76%	16.23%	14.11%	12.54%

January 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,499,421K ÷ $6,130,510K
= 24.46%

The pretax margin of Synopsys, Inc. has been fluctuating over the past eight quarters. In Q1 2024, the pretax margin was 24.27%, which was the highest among the reported quarters. This indicates that the company was able to generate more profit before taxes relative to its revenue in that quarter.

Prior to Q1 2024, the pretax margin ranged from 19.27% to 22.68% over the last seven quarters. Q3 2023 had the lowest pretax margin at 19.27%, while Q2 2022 had the second-highest at 22.68%.

Overall, the pretax margin trended upwards from Q3 2022 to Q1 2023 before experiencing some fluctuations in the subsequent quarters. This metric is important as it shows the company's efficiency in managing its expenses and generating profits before tax, reflecting its operational effectiveness.