Advanced Drainage Systems Inc (WMS)
Pretax margin
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 589,465 | 610,401 | 637,546 | 649,972 | 666,753 | 653,720 | 626,624 | 641,951 | 657,100 | 624,656 | 618,582 | 522,575 | 383,511 | 336,348 | 308,506 | 317,949 | 312,271 | 278,154 | 231,249 | 123,596 |
| Revenue (ttm) | US$ in thousands | 2,904,245 | 2,942,324 | 2,914,153 | 2,911,763 | 2,874,473 | 2,838,192 | 2,830,992 | 2,934,981 | 3,071,121 | 3,131,749 | 3,191,939 | 3,014,201 | 2,769,315 | 2,534,937 | 2,305,725 | 2,143,441 | 1,982,780 | 1,909,739 | 1,817,018 | 1,768,736 |
| Pretax margin | 20.30% | 20.75% | 21.88% | 22.32% | 23.20% | 23.03% | 22.13% | 21.87% | 21.40% | 19.95% | 19.38% | 17.34% | 13.85% | 13.27% | 13.38% | 14.83% | 15.75% | 14.57% | 12.73% | 6.99% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $589,465K ÷ $2,904,245K
= 20.30%
Advanced Drainage Systems Inc's pretax margin has shown a generally upward trend over the past few years, indicating improving profitability before taxes. From June 30, 2020, at 6.99%, the pretax margin increased steadily to 20.30% by March 31, 2025. This reflects the company's ability to manage its operating expenses and generate higher earnings relative to its revenue.
The significant increase in pretax margin from 2020 to 2025 suggests that Advanced Drainage Systems Inc has been effective in enhancing its operational efficiency and profitability. The company's management may have implemented cost-saving measures or streamlined its operations to achieve higher margins.
It is important to note that while the pretax margin has generally been on an upward trajectory, there have been some fluctuations during the period. For instance, there was a slight decline in pretax margin from June 30, 2023, to June 30, 2024, before recovering in the subsequent periods. These fluctuations could be influenced by various factors such as changes in operating expenses, revenue mix, or macroeconomic conditions.
Overall, the increasing trend in pretax margin indicates that Advanced Drainage Systems Inc has been successful in improving its profitability and efficiency over the years, which is a positive signal for investors and stakeholders.