Adapthealth Corp (AHCO)

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	-727,888	-453,104	57,272	60,781	94,141	124,926	173,396	241,948	188,929	68,192	-57,956	-143,097	-173,623	-100,284	-46,987	-53,368	-20,558	13,062	16,481	17,488
Revenue (ttm)	US$ in thousands	3,071,305	2,996,410	2,952,637	2,893,848	2,862,561	2,123,026	2,015,922	1,899,702	1,673,661	1,677,361	1,322,838	961,338	689,118	816,705	675,717	560,602	488,217	638,679	615,140	572,856
Pretax margin		-23.70%	-15.12%	1.94%	2.10%	3.29%	5.88%	8.60%	12.74%	11.29%	4.07%	-4.38%	-14.89%	-25.19%	-12.28%	-6.95%	-9.52%	-4.21%	2.05%	2.68%	3.05%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-727,888K ÷ $3,071,305K
= -23.70%

The pretax margin of AdaptHealth Corp has shown fluctuating trends over the past eight quarters. In Q4 2023, the pretax margin was at a negative 22.62%, indicating that the company's expenses exceeded its revenues before accounting for taxes. This was a significant decrease from the previous quarter's pretax margin of -14.38%. The company experienced a turnaround from negative margins in the first two quarters of 2023, with pretax margins of 2.00% and 2.16%, respectively. However, these margins were still lower compared to the same periods in 2022, where the company had pretax margins in the range of 3.30% to 9.11%.

The downward trend in the pretax margin from 2022 to 2023 suggests that AdaptHealth Corp may have faced challenges in controlling costs or maximizing revenues during the period. It will be important for the company to closely monitor its cost structures and revenue-generating activities to improve its pretax margin in the future.