Catalyst Pharmaceuticals Inc (CPRX)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	94,511	80,812	144,840	124,573	104,719	84,524	72,589	60,244	52,667	48,578	46,243	40,736	41,890	41,572	44,074	45,091	33,410	10,504	-11,574	-28,949
Revenue (ttm)	US$ in thousands	398,204	348,393	302,949	256,480	214,203	191,755	170,465	153,717	140,833	133,539	126,902	120,142	119,073	118,181	119,761	118,994	102,306	72,683	41,786	12,948
Pretax margin		23.73%	23.20%	47.81%	48.57%	48.89%	44.08%	42.58%	39.19%	37.40%	36.38%	36.44%	33.91%	35.18%	35.18%	36.80%	37.89%	32.66%	14.45%	-27.70%	-223.58%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $94,511K ÷ $398,204K
= 23.73%

The pretax margin for Catalyst Pharmaceuticals Inc has shown fluctuating trends over the past several quarters. The pretax margin represents the company's profitability before tax expenses are deducted, indicating the percentage of revenue that translates into pre-tax profits.

In the most recent quarter of December 31, 2023, the pretax margin stood at 23.73%, reflecting a moderate level of profitability. This was slightly higher than the previous quarter's pretax margin of 23.20% in September 30, 2023.

Notably, there was a significant increase in pretax margin in the quarter ending June 30, 2023, where it reached 47.81%, indicating a substantial improvement in profitability. This positive trend continued into the following quarter on March 31, 2023, with a pretax margin of 48.57%.

Looking back further, the pretax margin had been relatively stable around the 40% range up to June 30, 2022. There was a slight dip in profitability in the subsequent quarters, but the company managed to maintain pretax margins above 30% for the most part.

It is important to highlight a substantial decline in profitability in the last quarter of 2019 and the first quarter of 2020, where the pretax margins were at 32.66% and 14.45%, respectively. Furthermore, the performance in the first quarter of 2019 and the fourth quarter of 2019 showed negative pretax margins of -27.70% and -223.58%, indicating significant losses during those periods.

Overall, the pretax margin trend for Catalyst Pharmaceuticals Inc has demonstrated variability, with both periods of strong profitability and challenges. The company's ability to maintain and improve pretax margins will be crucial in sustaining long-term financial health and profitability.