Amedisys Inc (AMED)

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 86,216 39,623 160,244 280,231 210,819
Revenue US$ in thousands 2,348,320 2,236,380 2,223,200 2,214,110 2,071,520
Pretax margin 3.67% 1.77% 7.21% 12.66% 10.18%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $86,216K ÷ $2,348,320K
= 3.67%

Amedisys Inc's pre-tax margin, calculated as pre-tax income divided by total revenue, reflects the company's efficiency in managing operating expenses and generating profits before taxes.

In 2020, the pretax margin was 10.18%, indicating that the company was able to retain about 10.18 cents of each dollar in revenue as pre-tax profit.

By the end of 2021, the pre-tax margin improved to 12.66%, signaling increased profitability and potentially more effective cost management.

However, in 2022, the pretax margin decreased to 7.21%, suggesting a potential decline in profitability or higher operating costs relative to revenue.

The trend continued in 2023, where the pre-tax margin dropped significantly to 1.77%, indicating possible challenges in maintaining profitability.

In 2024, although there was a slight recovery with the pre-tax margin at 3.67%, it was still below the levels seen in 2021 and 2020.

Overall, fluctuations in Amedisys Inc's pre-tax margin over the years suggest variations in the company's ability to control costs, manage operational efficiency, and generate profits before tax implications. Further analysis would be necessary to understand the factors contributing to these changes and to assess the company's overall financial health.