Wolfspeed Inc (WOLF)

Pretax margin

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-863,100	-801,700	-751,900	-698,000	-328,600	-182,900	-150,000	-148,200	-191,900	-367,100	-412,900	-407,400	-522,800	-419,500	-374,200	-345,800	-197,900	-306,100	-464,500	-407,600
Revenue (ttm)	US$ in thousands	808,400	641,700	715,400	780,300	879,900	881,000	849,900	784,800	699,400	624,100	566,500	539,700	592,900	652,800	734,000	857,800	896,200	941,700	1,000,689	1,165,805
Pretax margin		-106.77%	-124.93%	-105.10%	-89.45%	-37.35%	-20.76%	-17.65%	-18.88%	-27.44%	-58.82%	-72.89%	-75.49%	-88.18%	-64.26%	-50.98%	-40.31%	-22.08%	-32.51%	-46.42%	-34.96%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-863,100K ÷ $808,400K
= -106.77%

Based on the pretax margin data provided for Wolfspeed Inc over the past several quarters, there appears to be significant variability in the company's profitability before taxes. The pretax margin has fluctuated widely, ranging from negative 124.93% to negative 17.65%.

The negative pretax margins indicate that the company's pre-tax operating income is insufficient to cover its operating expenses and other costs, resulting in net losses before tax. This trend of negative pretax margins suggests that Wolfspeed Inc has been facing challenges in generating sufficient revenue to cover its costs and expenses.

The most recent pretax margin of -106.77% indicates a substantial decline in profitability, which may raise concerns about the company's financial performance and operational efficiency. It is essential for Wolfspeed Inc to closely monitor and address the factors contributing to these negative pretax margins to improve its overall financial health and sustainability.