Spire Inc (SR)

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	256,300	279,700	340,200	101,000	219,100
Revenue	US$ in thousands	2,480,600	2,078,700	2,128,900	1,749,900	1,848,000
Pretax margin		10.33%	13.46%	15.98%	5.77%	11.86%

September 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $256,300K ÷ $2,480,600K
= 10.33%

The pretax margin is a key financial ratio that measures a company's efficiency in generating profits before accounting for taxes. It indicates the percentage of each dollar of revenue that remains as pretax profit after deducting operating expenses.

Based on the data provided for Spire Inc. from 2019 to 2023, the pretax margin exhibited fluctuations over the years. In 2019, the pretax margin stood at 11.22%, indicating that for every dollar of revenue generated, the company retained approximately 11.22 cents as pretax profit. This was followed by a decrease in 2020, with the pretax margin falling to 5.43%, reflecting a decline in profitability.

However, in 2021, there was a notable improvement as the pretax margin rose to 15.22%. This suggests that Spire Inc. was able to effectively manage its operating expenses and generate higher pretax profits compared to the previous year. The subsequent year, 2022, saw a slight decline in pretax margin to 12.72%, indicating a reduction in profitability compared to the previous year, but still an improvement over 2020.

The most recent data for 2023 shows a further decrease in the pretax margin to 9.61%. This decline may indicate increased operating expenses or lower revenue relative to the previous year, resulting in lower pretax profits.

Overall, the trend in Spire Inc.'s pretax margin demonstrates variability in the company's ability to manage its costs and generate pretax profits over the years. It is important for the company to closely monitor its operating expenses and revenue generation strategies to ensure sustained profitability and potentially improve the pretax margin in the future.