HealthStream Inc (HSTM)

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 24,803 18,511 15,585 7,766 17,823
Revenue US$ in thousands 291,646 279,063 266,826 256,712 244,826
Pretax margin 8.50% 6.63% 5.84% 3.03% 7.28%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $24,803K ÷ $291,646K
= 8.50%

HealthStream Inc's pretax margin has experienced fluctuations over the five-year period from December 31, 2020, to December 31, 2024. Starting at 7.28% in 2020, the pretax margin decreased to 3.03% by the end of 2021 before showing an improvement in 2022 to 5.84%. This positive trend continued in 2023 with a further increase to 6.63%. The most significant improvement was seen in 2024 when the pretax margin reached 8.50%, indicating the company's ability to generate higher profits before taxes relative to its total revenue. Overall, these fluctuations suggest a mix of challenges and opportunities in managing HealthStream Inc's profitability over the five-year period.