Advanced Drainage Systems Inc (WMS)
Pretax margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 668,913 | 657,675 | 381,402 | 310,612 | -179,082 |
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Pretax margin | 23.22% | 21.41% | 13.78% | 15.71% | -10.97% |
March 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $668,913K ÷ $2,881,170K
= 23.22%
The pretax margin of Advanced Drainage Systems Inc has shown a positive trend over the past five years, with an increasing trend from -10.97% in March 2020 to 23.22% in March 2024. This improvement indicates effective cost management and operational efficiency, leading to higher profitability before taxes. The company has demonstrated a consistent focus on improving its profitability, as evidenced by the upward trend in pretax margin from 15.71% in March 2021 to 23.22% in March 2024. This suggests that Advanced Drainage Systems Inc has been able to effectively control costs and generate more income relative to its total revenue over the years. Overall, the increasing pretax margin reflects the company's ability to operate more efficiently and generate higher profits before accounting for taxes.