Seagate Technology PLC (STX)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 445,000 | -496,000 | 1,679,000 | 1,348,000 | 1,032,000 |
| Revenue | US$ in thousands | 6,190,000 | 7,384,000 | 11,661,000 | 10,681,000 | 10,509,000 |
| Pretax margin | 7.19% | -6.72% | 14.40% | 12.62% | 9.82% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $445,000K ÷ $6,190,000K
= 7.19%
Seagate Technology PLC's pretax margin has fluctuated over the past five years. In 2024, the company reported a pretax margin of 7.19%, indicating that for every dollar of sales, the company generated a pretax profit of 7.19 cents. This marks an improvement compared to the negative pretax margin of -6.72% in 2023. The significant increase in pretax margin in 2024 suggests that the company was able to better control its operating expenses and generate higher profits relative to its revenue.
However, the pretax margin in 2024 was still lower than the levels achieved in 2022 and 2021, which were 14.40% and 12.62% respectively. This indicates a slight decline in profitability in 2024 compared to the preceding years. It is worth noting that the pretax margin in 2020 was 9.82%, which falls between the higher margins of 2021 and 2022 and the lower margins of 2023 and 2024.
Overall, Seagate Technology PLC's pretax margin has shown volatility over the past five years, with fluctuations reflecting changes in the company's financial performance and efficiency in managing its operating expenses. The positive pretax margin in 2024, following a negative margin in 2023, indicates an improvement in profitability, but it is important for the company to sustain and potentially increase its pretax margin in the future for long-term financial health.
Peer comparison
Jun 30, 2024