Healthcare Services Group Inc (HCSG)
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 | 52,941 | 53,056 | 45,082 | 61,823 | 129,186 |
| Revenue | US$ in thousands | 1,715,680 | 1,671,390 | 1,690,180 | 1,641,960 | 1,760,300 |
| Pretax margin | 3.09% | 3.17% | 2.67% | 3.77% | 7.34% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $52,941K ÷ $1,715,680K
= 3.09%
The pretax margin of Healthcare Services Group Inc has shown a declining trend over the years, starting at 7.34% in December 31, 2020, and decreasing to 3.77% by December 31, 2021. The margin further dropped to 2.67% by December 31, 2022, before slightly increasing to 3.17% by December 31, 2023, and then stabilizing at 3.09% by December 31, 2024. The decreasing trend indicates that the company's profitability before taxes has been under pressure, which may be attributed to various factors such as increasing costs or pricing pressures. It would be important for the company to closely monitor and address the factors impacting its pretax margin to sustain or improve its profitability in the future.