Advanced Drainage Systems Inc (WMS)
Pretax margin
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 668,913 | 655,599 | 627,937 | 644,174 | 657,675 | 624,149 | 618,511 | 521,171 | 381,402 | 333,932 | 305,500 | 315,388 | 310,612 | 277,309 | 230,591 | 122,570 | -179,082 | -170,533 | -179,551 | -142,729 |
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Pretax margin | 23.19% | 22.99% | 22.07% | 21.84% | 21.41% | 19.91% | 19.36% | 17.28% | 13.76% | 13.18% | 13.26% | 14.72% | 15.70% | 14.55% | 12.71% | 6.94% | -10.71% | -10.84% | -11.98% | -10.12% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $668,913K ÷ $2,884,829K
= 23.19%
The pretax margin of Advanced Drainage Systems Inc has shown a general increasing trend over the past five quarters, indicating improved profitability before taxes. The pretax margin increased from -10.84% in December 2019 to 23.19% in March 2024. This positive trend suggests that the company has been able to effectively manage its costs and expenses relative to its revenue, resulting in higher profitability. It is important to note that a higher pretax margin indicates that the company is generating more income for every dollar of sales before accounting for taxes. Overall, the improving pretax margin reflects positively on the financial performance and efficiency of Advanced Drainage Systems Inc.