Avantor Inc (AVTR)
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 | 853,900 | 410,500 | 851,100 | 753,000 | 62,300 |
| Revenue | US$ in thousands | 6,783,600 | 6,967,200 | 7,512,400 | 7,386,100 | 6,393,600 |
| Pretax margin | 12.59% | 5.89% | 11.33% | 10.19% | 0.97% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $853,900K ÷ $6,783,600K
= 12.59%
Based on the data provided, Avantor Inc's pretax margin has shown a varying trend over the five-year period. The pretax margin increased significantly from 0.97% as of December 31, 2020, to 10.19% by December 31, 2021. This sharp improvement indicates an enhanced efficiency in managing operating expenses relative to revenue before accounting for taxes.
However, in the following year, the pretax margin continued to rise to 11.33% by December 31, 2022, reflecting sustained profitability and potentially improved cost management strategies. Nevertheless, there was a slight decline in the pretax margin to 5.89% by December 31, 2023, which could suggest temporary challenges or increased costs impacting the company's earnings.
Subsequently, the pretax margin rebounded to 12.59% by December 31, 2024, reaching a new high. This increase may indicate successful efforts in boosting revenues or optimizing cost structures to enhance profitability. Overall, Avantor Inc's pretax margin performance demonstrates a mix of fluctuations and improvements, showcasing the company's ability to adapt to changing market conditions and manage its financial performance effectively.
Peer comparison
Dec 31, 2024