Addus HomeCare Corporation (ADUS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 99,353 | 81,326 | 60,171 | 60,398 | 41,942 |
| Revenue | US$ in thousands | 1,160,600 | 1,051,790 | 943,505 | 859,640 | 762,533 |
| Pretax margin | 8.56% | 7.73% | 6.38% | 7.03% | 5.50% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $99,353K ÷ $1,160,600K
= 8.56%
Based on the data provided, the pretax margin of Addus HomeCare Corporation has shown a generally increasing trend over the last five years.
- The pretax margin increased from 5.50% as of December 31, 2020, to 8.56% as of December 31, 2024.
- This indicates that the company has been able to improve its operational efficiency and manage its expenses effectively, resulting in a higher percentage of revenue remaining after accounting for operating costs but before taxes.
- The consistent growth in pretax margin year over year suggests that Addus HomeCare Corporation has been successful in generating more profit from its operations relative to its revenue over the period under review.
- A rising pretax margin also indicates the company's ability to control costs and increase profitability, which can be a positive signal for investors and stakeholders.
- However, it is important for the company to maintain this positive trend in pretax margin in the future to sustain its financial health and continue delivering value to its shareholders.
Peer comparison
Dec 31, 2024