Globus Medical (GMED)

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	120,722	165,393	243,019	180,407	125,899
Revenue	US$ in thousands	2,519,360	1,568,480	1,022,840	958,102	789,042
Pretax margin		4.79%	10.54%	23.76%	18.83%	15.96%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $120,722K ÷ $2,519,360K
= 4.79%

The pretax margin is a key financial metric that indicates the efficiency and profitability of Globus Medical before accounting for taxes. Analyzing the trend from 2020 to 2024, the pretax margin has fluctuated significantly over the years. In 2020, the pretax margin stood at 15.96%, indicating that for every dollar of revenue generated, the company retained approximately 15.96 cents before taxes.

Subsequently, in 2021, the pretax margin increased to 18.83%, suggesting an improvement in the company's profitability. This positive trend continued in 2022, with the pretax margin rising to 23.76%, signaling a substantial enhancement in operational efficiency.

However, the trend reversed in 2023, as the pretax margin decreased to 10.54%. This decline may indicate potential challenges or increased costs impacting the company's profitability during that period.

The most significant drop occurred in 2024, with the pretax margin plummeting to 4.79%. This sharp decline could raise concerns about the company's ability to maintain profitability and operational effectiveness.

In summary, the fluctuating pretax margin of Globus Medical from 2020 to 2024 reflects varying levels of efficiency and profitability, suggesting the need for further analysis to identify the underlying factors driving these changes.