Wolfspeed Inc (WOLF)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -863,100 | -328,500 | -191,900 | -522,800 | -199,700 |
| Revenue | US$ in thousands | 807,400 | 878,100 | 699,200 | 478,000 | 880,600 |
| Pretax margin | -106.90% | -37.41% | -27.45% | -109.37% | -22.68% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-863,100K ÷ $807,400K
= -106.90%
The pretax margin of Wolfspeed Inc has shown significant fluctuations over the past five years. The company experienced a negative pretax margin in all years, with the margin ranging from -109.37% in 2021 to -22.68% in 2020.
The pretax margin deteriorated sharply in 2021, reaching a low of -109.37%, indicating that the company's expenses exceeded its revenues before accounting for taxes. This could be a cause for concern as it suggests operational inefficiencies or poor cost management.
In subsequent years, the pretax margin improved slightly but remained negative. The margin was -27.45% in 2022 and -37.41% in 2023. However, in 2024, the company experienced a significant decrease in pretax margin, falling to -106.90%.
Overall, the negative pretax margins indicate that Wolfspeed Inc has struggled to generate profits before taxes relative to its revenue. The company may need to address its cost structure, operational efficiency, or revenue generation strategies to improve its financial performance and sustainability.
Peer comparison
Jun 30, 2024