Chemed Corp (CHE)

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 399,465 350,367 329,679 350,314 395,990
Revenue US$ in thousands 2,431,290 2,264,420 2,134,960 2,139,260 2,079,580
Pretax margin 16.43% 15.47% 15.44% 16.38% 19.04%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $399,465K ÷ $2,431,290K
= 16.43%

Based on the provided data, Chemed Corp's pretax margin has shown a slight decline over the years. The pretax margin decreased from 19.04% as of December 31, 2020, to 16.38% as of December 31, 2021, reflecting a decrease in profitability before accounting for taxes. However, there was a slight recovery in the pretax margin for the following years, with the ratio ranging from 15.44% as of December 31, 2022, to 16.43% as of December 31, 2024. This indicates that the company's ability to generate profits before tax expenses improved over the period after experiencing a temporary decline. Overall, while there was variability in the pretax margin, Chemed Corp managed to maintain a relatively stable level of profitability in the most recent period.