Alkermes Plc (ALKS)
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 | 258,119 | -167,304 | -39,306 | -96,537 | -197,056 |
| Revenue | US$ in thousands | 1,639,870 | 1,099,460 | 1,162,060 | 1,032,500 | 1,156,450 |
| Pretax margin | 15.74% | -15.22% | -3.38% | -9.35% | -17.04% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $258,119K ÷ $1,639,870K
= 15.74%
The pretax margin of Alkermes plc, a pharmaceutical company, has shown significant fluctuations over the past five years. In 2023, the pretax margin was at a healthy 25.34%, signaling that the company was able to generate a substantial level of operating income before accounting for taxes. This represents a strong improvement from the negative margins seen in the two prior years, which indicates potential operational challenges or inefficiencies during those periods.
The negative pretax margins in 2022, 2021, 2020, and 2019 suggest that the company incurred expenses that outweighed its operating income before tax during those years. This could be indicative of various factors such as high operating costs, lower revenue levels, or one-time charges impacting the profitability of the company.
Overall, the positive pretax margin in 2023 is a positive sign for Alkermes plc, but further analysis of the company's financial performance and cost structure would be necessary to understand the underlying factors contributing to the fluctuating pretax margins in recent years.
Peer comparison
Dec 31, 2023