Synopsys Inc (SNPS)

Pretax margin

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,359,086	1,595,282	1,542,418	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
Revenue (ttm)	US$ in thousands	6,265,680	6,228,820	6,190,360	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
Pretax margin		37.65%	25.61%	24.92%	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%

October 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,359,086K ÷ $6,265,680K
= 37.65%

The pretax margin of Synopsys Inc has shown a positive trend over the period under consideration. The company's pretax margin has generally been on an upward trajectory, increasing from 14.76% in January 2020 to 37.65% in October 2024. This indicates that the company has been able to improve its operational efficiency and control costs in generating operating profits before taking into account taxes.

The pretax margin of 37.65% in October 2024 is particularly noteworthy as it reflects the company's ability to efficiently manage its operating expenses relative to its sales revenue. This sustained increase in pretax margin over time demonstrates Synopsys Inc's ability to maintain profitability and potentially generate higher net income for its shareholders.

Overall, the consistent improvement in Synopsys Inc's pretax margin suggests effective cost management practices, operational efficiency, and a strong financial performance in the recent periods.