Sensata Technologies Holding NV (ST)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	17,842	384,934	490,939	476,816	396,702	384,114	304,239	369,932	413,917	409,283	394,394	232,740	165,641	138,323	145,429	290,806	390,423	429,218	503,882	528,291
Revenue (ttm)	US$ in thousands	3,876,366	3,923,365	3,932,383	3,884,079	3,850,443	3,769,142	3,701,614	3,673,355	3,641,515	3,658,307	3,540,736	3,169,794	3,045,578	2,985,778	3,047,180	3,354,401	3,450,631	3,451,862	3,475,699	3,505,833
Pretax margin		0.46%	9.81%	12.48%	12.28%	10.30%	10.19%	8.22%	10.07%	11.37%	11.19%	11.14%	7.34%	5.44%	4.63%	4.77%	8.67%	11.31%	12.43%	14.50%	15.07%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $17,842K ÷ $3,876,366K
= 0.46%

The pretax margin of Sensata Technologies Holding Plc has shown some fluctuations over the past eight quarters. In Q4 2023, the pretax margin decreased significantly to 0.44% compared to Q3 2023, where it was at 9.44%. This sharp decline may raise concerns regarding the company's profitability and efficiency in managing its operating expenses.

However, when looking at the trend over a longer period, the pretax margin has generally been quite stable, staying above 7% in most quarters. The highest pretax margins were recorded in Q2 2023 and Q1 2023, at 11.99% and 11.77% respectively, indicating strong profitability during that period.

It is important for investors and stakeholders to monitor the company's pretax margin closely to assess its ability to generate profits before accounting for taxes and to ensure sustainable financial performance in the long run.