Varex Imaging Corp (VREX)
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 | 30,800 | 44,000 | 28,100 | -73,100 | 21,200 |
| Revenue | US$ in thousands | 893,400 | 859,400 | 818,100 | 738,300 | 780,600 |
| Pretax margin | 3.45% | 5.12% | 3.43% | -9.90% | 2.72% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $30,800K ÷ $893,400K
= 3.45%
Varex Imaging Corp's pretax margin has fluctuated over the past five years. In the most recent fiscal year ending in September 2023, the pretax margin was 3.45%, showing a decrease from the prior year when it was 5.12%. This decline could be a cause for concern as it indicates a decrease in profitability before considering taxes.
Looking further back, the company experienced a significant improvement in pretax margin in 2020 compared to the negative margin in the previous year. The positive trend continued in 2021 with a pretax margin of 3.43%. However, this positive momentum was not maintained as there was a slight decrease in 2022 followed by the more significant drop in 2023.
Overall, Varex Imaging Corp's pretax margin performance has been volatile, with periods of improvement interspersed with declines. It is important for the company to closely monitor and manage its expenses and revenues to ensure sustainable profitability in the future.
Peer comparison
Sep 30, 2023