Adapthealth Corp (AHCO)
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 | 131,661 | -727,895 | 94,085 | 188,981 | -173,587 |
| Revenue | US$ in thousands | 3,259,430 | 3,071,300 | 2,862,560 | 2,350,980 | 1,023,920 |
| Pretax margin | 4.04% | -23.70% | 3.29% | 8.04% | -16.95% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $131,661K ÷ $3,259,430K
= 4.04%
The pretax margin of Adapthealth Corp has shown variability over the past five years. In December 31, 2020, the company reported a negative pretax margin of -16.95%, indicating that its pre-tax earnings were insufficient to cover operating expenses. However, by December 31, 2021, the pretax margin improved significantly to 8.04%, suggesting better control over costs and potentially increased profitability.
In the following year, by December 31, 2022, the pretax margin decreased to 3.29%, reflecting a slight decline in profitability. The trend worsened in December 31, 2023, with a pretax margin of -23.70%, depicting a significant decrease in profitability and potential financial challenges.
Finally, by December 31, 2024, the pretax margin improved to 4.04%, indicating some recovery in profitability. Overall, the fluctuation in Adapthealth Corp's pretax margin over the five-year period underscores the importance of monitoring cost management and revenue generation strategies to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024