Fulgent Genetics Inc (FLGT)

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 -51,956 -174,085 184,025 104,339 291,684
Revenue US$ in thousands 283,470 289,213 618,968 992,584 421,712
Pretax margin -18.33% -60.19% 29.73% 10.51% 69.17%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-51,956K ÷ $283,470K
= -18.33%

The pretax margin is a key financial metric that indicates the efficiency with which Fulgent Genetics Inc is able to generate profits before accounting for taxes.

Looking at the trend over the past five years, we observe a significant fluctuation in the pretax margin. In December 2020, the pretax margin stood impressively high at 69.17%, showcasing strong profitability. However, this margin experienced a sharp decline in the following years, dropping to 10.51% by December 2021.

Subsequently, there was a notable improvement in the pretax margin, which increased to 29.73% by December 2022. However, the company faced challenges in the subsequent years as the pretax margin turned negative, indicating that Fulgent Genetics Inc incurred losses before taxes.

By December 2024, the pretax margin stood at -18.33%, signifying a further decrease in profitability and highlighting potential financial difficulties. Overall, while the company demonstrated strong profitability in 2020, it faced significant challenges in maintaining its profitability in the subsequent years, ultimately leading to negative pretax margins in 2023 and 2024.