DexCom Inc (DXCM)

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	710,400	390,800	256,800	297,900	104,200
Revenue	US$ in thousands	3,603,200	2,889,200	2,333,800	1,822,500	1,396,800
Pretax margin		19.72%	13.53%	11.00%	16.35%	7.46%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $710,400K ÷ $3,603,200K
= 19.72%

The pretax margin of Dexcom Inc has shown varying levels over the past five years. In 2023, the pretax margin increased significantly to 19.61%, representing a strong profitability level compared to the previous years. This improvement indicates that Dexcom Inc has been able to effectively manage its operating expenses and generate higher earnings before taxes relative to its total revenue.

In 2022, the pretax margin was 13.43%, representing a moderate profitability level compared to 2023 but still higher than the years prior. The company's ability to maintain a double-digit pretax margin indicates operational efficiency in managing costs and generating profits.

In 2021, the pretax margin was 7.10%, indicating a lower profitability level compared to the two subsequent years. However, Dexcom Inc managed to improve its profitability in the following years.

In 2020, the pretax margin was 11.68%, showing a slight decrease from 2019 but still indicating a reasonably healthy level of profitability.

In 2019, the pretax margin was 7.06%, showing a similar level of profitability to 2021 but lower than the subsequent years.

Overall, the trend in Dexcom Inc's pretax margin reflects fluctuations in profitability, with significant improvement in recent years. It is essential for the company to continue monitoring and managing its operational efficiency to sustain and potentially enhance its profitability levels in the future.