Boston Scientific Corp (BSX)
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 | 1,984,000 | 1,141,000 | 1,077,000 | -80,000 | 687,000 |
| Revenue | US$ in thousands | 13,975,000 | 12,190,000 | 11,625,000 | 9,552,000 | 10,348,000 |
| Pretax margin | 14.20% | 9.36% | 9.26% | -0.84% | 6.64% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,984,000K ÷ $13,975,000K
= 14.20%
The pretax margin of Boston Scientific Corp. has shown fluctuations over the past five years. In 2023, the company achieved a pretax margin of 13.95%, indicating that for every dollar of revenue generated, the company retained approximately 13.95 cents before considering taxes. This was an improvement compared to the previous year when the pretax margin was 8.98%.
The significant increase in the pretax margin in 2023 suggests that Boston Scientific Corp. was able to effectively manage its expenses relative to its revenue. This could be attributed to better cost control measures, operational efficiency, pricing strategies, or revenue growth outpacing expenses.
In comparison to the negative pretax margin in 2020, the company has made a notable recovery in profitability in recent years. It is essential for Boston Scientific Corp. to maintain or further improve its pretax margin in the coming years to ensure sustainable profitability and long-term growth.
Peer comparison
Dec 31, 2023