Strategic Education Inc (STRA)

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	100,726	73,097	54,171	56,348	69,569	71,455	69,410	74,702	76,599	50,631	61,465	82,042	113,957	150,160	157,069	140,756	123,724	104,644	25,384	-1,706
Revenue (ttm)	US$ in thousands	1,133,551	1,103,905	1,081,092	1,066,976	1,069,225	1,071,595	1,078,450	1,094,322	1,114,981	1,106,284	1,064,163	1,018,617	1,004,460	1,000,738	1,014,628	1,015,848	997,137	975,468	894,666	764,224
Pretax margin		8.89%	6.62%	5.01%	5.28%	6.51%	6.67%	6.44%	6.83%	6.87%	4.58%	5.78%	8.05%	11.35%	15.00%	15.48%	13.86%	12.41%	10.73%	2.84%	-0.22%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $100,726K ÷ $1,133,551K
= 8.89%

The pretax margin of Strategic Education Inc has shown some fluctuations over the eight quarters presented. In Q4 2023, the pretax margin was 8.89%, an increase from the previous quarter. This improvement indicates that the company was able to more efficiently control its operating expenses relative to its revenue in the most recent quarter.

Comparing Q4 2023 to the same quarter in the previous year, there was also a positive change as the pretax margin rose from 6.53% in Q4 2022 to 8.89% in Q4 2023. This suggests an enhancement in the company's profitability as a higher proportion of revenue is translating into pre-tax earnings.

However, when observing the trend over the past four quarters, the pretax margin has been somewhat volatile, ranging from 5.03% to 8.89%. This variability could indicate factors such as changes in operating efficiency, cost management, or revenue generation.

Overall, while the pretax margin of Strategic Education Inc has shown fluctuations, the recent increase in Q4 2023 indicates a positive trend in the company's ability to generate profits before taxes relative to its total revenue. Continued monitoring of this metric will be essential to assess the company's financial performance and managerial effectiveness.