Catalyst Pharmaceuticals Inc (CPRX)

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	216,263	94,511	104,719	52,667	41,890
Revenue	US$ in thousands	491,734	398,204	214,203	140,833	119,073
Pretax margin		43.98%	23.73%	48.89%	37.40%	35.18%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $216,263K ÷ $491,734K
= 43.98%

Based on the data provided, Catalyst Pharmaceuticals Inc has demonstrated a varying pretax margin over the years. The pretax margin, which represents the percentage of each dollar of revenue that the company retains as profit before paying taxes, increased from 35.18% in December 2020 to 37.40% in December 2021, indicating a positive trend. Subsequently, the pretax margin rose significantly to 48.89% in December 2022, reflecting improved profitability.

However, there was a notable decline in the pretax margin in December 2023, dropping to 23.73%. This decrease may indicate challenges or expenses that impacted the company's profitability during that period. Nonetheless, Catalyst Pharmaceuticals Inc managed to bounce back strongly in December 2024, with the pretax margin reaching 43.98%.

Overall, while there have been fluctuations in the pretax margin over the years, Catalyst Pharmaceuticals Inc has demonstrated the ability to adapt and improve its profitability. It is essential for the company to monitor and manage its costs effectively to sustain and enhance its financial health in the future.