Adapthealth Corp (AHCO)

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	-727,895	94,085	188,981	-173,587	-20,602
Revenue	US$ in thousands	3,071,300	2,862,560	2,350,980	1,023,920	488,218
Pretax margin		-23.70%	3.29%	8.04%	-16.95%	-4.22%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $-727,895K ÷ $3,071,300K
= -23.70%

The pretax margin of AdaptHealth Corp has fluctuated over the past five years, as evident from the data provided. In 2023, the company experienced a negative pretax margin of -22.62%, indicating that its pre-tax earnings were insufficient to cover operating expenses and other costs. This decrease in profitability compared to the previous year's pretax margin of 3.30% suggests potential challenges or inefficiencies within the company's operations.

In 2022, AdaptHealth Corp's pretax margin improved to 3.30%, indicating that the company was able to generate more profit before taxation compared to the previous year. This was further reflected in 2021, where the pretax margin expanded to 7.78%, demonstrating a positive trend in profitability.

However, in 2020 and 2019, AdaptHealth Corp faced profitability challenges as reflected by negative pretax margins of -19.50% and -2.21%, respectively. These figures suggest that the company's expenses and costs exceeded its revenue generation before tax during these years.

Overall, the fluctuating trend in AdaptHealth Corp's pretax margin over the past five years highlights the importance of closely monitoring the company's financial performance and operational efficiency to ensure sustainable profitability in the future.