Harmony Biosciences Holdings (HRMY)

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	191,804	173,396	104,686	37,428	-41,380
Revenue	US$ in thousands	714,734	548,499	419,060	255,101	134,691
Pretax margin		26.84%	31.61%	24.98%	14.67%	-30.72%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $191,804K ÷ $714,734K
= 26.84%

Harmony Biosciences Holdings has shown significant improvement in its pretax margin over the past few years. The company's pretax margin, a key profitability ratio, was negative at -30.72% as of December 31, 2020, indicating the company was operating at a loss before tax during that period.

However, the company managed to turn around its financial performance, as evidenced by the substantial increase in the pretax margin to 14.67% by December 31, 2021. This improvement indicates that Harmony Biosciences Holdings was able to control its operating expenses and generate more income before taxes.

The positive trend continued in the following years, with the pretax margin further increasing to 24.98% by December 31, 2022, 31.61% by December 31, 2023, and then slightly decreasing to 26.84% by December 31, 2024. These successive improvements demonstrate the company's ability to effectively manage costs, increase revenue, and enhance overall profitability.

Overall, Harmony Biosciences Holdings has shown a commendable performance in enhancing its pretax margin over the years, reflecting improved operational efficiency and financial health.