TE Connectivity Ltd (TEL)
Pretax margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,796,000 | 2,274,000 | 2,734,000 | 2,384,000 | 542,000 |
| Revenue | US$ in thousands | 15,845,000 | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 |
| Pretax margin | 17.65% | 14.25% | 16.86% | 16.04% | 4.47% |
September 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,796,000K ÷ $15,845,000K
= 17.65%
TE Connectivity Ltd's pretax margin has shown a positive trend over the past five years, indicating an improving profitability before taking into account taxes and other expenses. In the latest fiscal year ending on September 30, 2024, the pretax margin stood at 17.65%, significantly higher than the previous year's margin of 14.25%. This indicates that the company has become more efficient in generating profits from its operations relative to its total revenue.
The pretax margin was relatively stable between 16.04% in 2021 and 16.86% in 2022 before experiencing a notable increase in 2023. The sharp increase from 4.47% in 2020 to 16.04% in 2021 suggests a significant improvement in the company's operational efficiency or cost management during that period.
Overall, the trend in TE Connectivity Ltd's pretax margin reflects a positive trajectory in profitability over the past five years, with the company demonstrating an ability to maintain and improve its operational efficiency and control costs, resulting in increased profitability before taxes.
Peer comparison
Sep 30, 2024