Globus Medical (GMED)

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	165,392	202,514	261,444	257,310	243,019	200,731	193,718	172,111	180,407	222,792	221,470	150,595	125,899	118,136	111,758	180,793	189,946	172,247	168,092	171,303
Revenue (ttm)	US$ in thousands	1,568,476	1,226,440	1,096,949	1,068,982	1,022,843	998,366	973,939	961,307	958,102	941,526	927,903	825,809	789,042	767,264	747,381	792,998	785,368	769,639	742,660	721,505
Pretax margin		10.54%	16.51%	23.83%	24.07%	23.76%	20.11%	19.89%	17.90%	18.83%	23.66%	23.87%	18.24%	15.96%	15.40%	14.95%	22.80%	24.19%	22.38%	22.63%	23.74%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $165,392K ÷ $1,568,476K
= 10.54%

To analyze the pretax margin of Globus Medical Inc based on the provided data, we observe fluctuations in the pretax margin over the past eight quarters. The pretax margin indicates the company's efficiency in generating profits before accounting for taxes.

In Q1 2022, the pretax margin stood at 17.90%, showing a moderate performance. It then experienced a slight increase in Q2 2022 to 19.89%, reflecting improved profitability. However, the company significantly improved its pretax margin in Q3 2022 to 20.11%, indicating a strong performance.

The trend continued into Q4 2022, with a pretax margin of 23.76%, reaching the highest level in recent quarters. This suggests efficient cost management and revenue generation for the company at that time.

In the first quarter of 2023, the pretax margin slightly dropped to 24.07%, remaining at a high level. However, in Q2 2023, there was a notable decrease in the pretax margin to 23.83%, signaling a potential dip in profitability or a change in the company's operating environment.

The downward trend continued in Q3 2023, with a pretax margin of 16.51%, reflecting a significant decline from the previous quarter. Lastly, in Q4 2023, the pretax margin further decreased to 10.54%, demonstrating a notable decrease in profit generation efficiency.

Overall, while Globus Medical Inc experienced fluctuations in its pretax margin over the analyzed period, it is essential for investors and stakeholders to closely monitor the company's profitability trends and investigate the factors influencing these fluctuations to assess its financial performance effectively.