Amphastar P (AMPH)

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	189,191	169,378	114,863	82,746	4,943
Revenue	US$ in thousands	731,967	644,395	498,987	437,768	349,846
Pretax margin		25.85%	26.28%	23.02%	18.90%	1.41%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $189,191K ÷ $731,967K
= 25.85%

Amphastar P's pretax margin has shown a notable increase over the years, reflecting a positive trend in the company's profitability before accounting for taxes.

In December 31, 2020, the pretax margin stood at a relatively low 1.41%, indicating a minimal profit before tax expenses. However, by December 31, 2021, there was a significant jump to 18.90%, signifying a substantial improvement in profitability within a year.

The trend continued to demonstrate further growth in profitability, with the pretax margin reaching 23.02% by December 31, 2022, and increasing even more to 26.28% by December 31, 2023, showcasing a strong upward trajectory in earnings performance.

Although there was a slight dip to 25.85% by December 31, 2024, the overall trend indicates that Amphastar P has been effectively managing its costs and operations to generate higher profits before taxes. This increasing pretax margin suggests that the company is becoming more efficient and profitable, which could be an encouraging sign for investors and stakeholders.