Sonos Inc (SONO)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,394 | 68,730 | 156,925 | -20,083 | -1,076 |
| Revenue | US$ in thousands | 1,661,860 | 1,741,010 | 1,716,560 | 1,324,680 | 1,253,490 |
| Pretax margin | 0.26% | 3.95% | 9.14% | -1.52% | -0.09% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $4,394K ÷ $1,661,860K
= 0.26%
The pretax margin is a profitability ratio that indicates the percentage of each dollar of a company's revenue that is retained as pre-tax profit. Analyzing Sonos Inc's pretax margin over the past five years provides insights into the company's ability to generate profits before accounting for taxes and other non-operating expenses.
From the data provided, Sonos Inc's pretax margin has exhibited fluctuations over the five-year period. In 2023, the pretax margin stood at 0.27%, reflecting a significant decline from the previous year's figure of 3.92%. This suggests a notable decrease in the company's profitability during this period.
The pretax margin was substantially higher in 2021, at 9.14%, indicating a strong ability to generate profits relative to the prior year. However, the margin dipped into negative territory in 2020, at -1.51%, which could raise concerns about the company's operational efficiency and financial performance.
The pretax margin in 2019 was also negative, at -0.09%, pointing to potential challenges in generating profits before accounting for taxes and non-operating expenses.
Overall, the trend in Sonos Inc's pretax margin reflects considerable variability in its profitability performance over the past five years. This variability may be influenced by factors such as changes in operating expenses, pricing strategies, cost management, and other operational and financial dynamics that impact the company's ability to generate profits before tax.
It is important for stakeholders to closely monitor Sonos Inc's pretax margin and assess the underlying reasons for the fluctuations to gain a comprehensive understanding of the company's financial health and performance.
Peer comparison
Sep 30, 2023