Addus HomeCare Corporation (ADUS)

Pretax margin

		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	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	81,326	74,249	69,156	64,673	60,171	59,716	60,372	61,173	60,398	53,460	49,607	42,831	41,942	45,074	39,825	37,590	32,596	23,781	21,385	19,876
Revenue (ttm)	US$ in thousands	1,051,791	1,022,325	991,801	968,399	943,504	921,874	898,854	880,430	859,640	832,331	810,463	777,659	762,842	759,222	735,551	700,648	650,057	597,350	565,258	547,388
Pretax margin		7.73%	7.26%	6.97%	6.68%	6.38%	6.48%	6.72%	6.95%	7.03%	6.42%	6.12%	5.51%	5.50%	5.94%	5.41%	5.37%	5.01%	3.98%	3.78%	3.63%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $81,326K ÷ $1,051,791K
= 7.73%

The pretax margin of Addus HomeCare Corporation has shown a generally positive trend over the past eight quarters. There has been a consistent increase in pretax margin from Q1 2022 to Q4 2023, indicating an improvement in the company's ability to generate earnings before taxes relative to its total revenue. This suggests that the company has been effectively managing its operating expenses and optimizing its revenue streams.

The pretax margin has experienced some fluctuations on a quarterly basis, with variations ranging from 6.33% in Q4 2022 to 7.68% in Q4 2023. Despite these fluctuations, the overall trend indicates a positive direction for the company's profitability.

It is important for Addus HomeCare Corporation to continue monitoring and improving its pretax margin to ensure sustainable profitability and financial health. This can be achieved through efficient cost management, revenue growth strategies, and operational efficiency enhancements.