Acadia Healthcare Company Inc (ACHC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -31,366 | 367,239 | 258,235 | -631,526 | 134,008 |
| Revenue | US$ in thousands | 2,856,360 | 2,540,640 | 2,212,750 | 1,957,410 | 2,920,370 |
| Pretax margin | -1.10% | 14.45% | 11.67% | -32.26% | 4.59% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-31,366K ÷ $2,856,360K
= -1.10%
The pretax margin of Acadia Healthcare Company Inc has fluctuated over the past five years, ranging from a low of -0.87% in 2023 to a high of 14.33% in 2022. The pretax margin indicates the company's profitability before taxes relative to its total revenue. A positive pretax margin reflects the company's ability to generate profits, while a negative margin indicates a loss.
In 2023, Acadia Healthcare Company Inc experienced a negative pretax margin of -0.87%, which suggests that the company's expenses exceeded its revenues before accounting for taxes. However, the company demonstrated strong profitability in 2022 with a pretax margin of 14.33%, indicating efficient cost management and revenue generation.
The upward trend in pretax margin from 2019 to 2023 highlights the company's potential improvement in operational efficiency and profitability over the years. It is essential for Acadia Healthcare Company Inc to continue monitoring and optimizing its cost structure and revenue streams to sustain and enhance its pretax margin in the future.