IDEXX Laboratories Inc (IDXX)

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	1,109,830	1,061,180	859,972	902,654	661,985
Revenue	US$ in thousands	3,897,500	3,660,950	3,367,320	3,215,360	2,706,660
Pretax margin		28.48%	28.99%	25.54%	28.07%	24.46%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,109,830K ÷ $3,897,500K
= 28.48%

The pretax margin of IDEXX Laboratories Inc has shown a consistent and solid performance over the years, with a gradual increase from 24.46% in December 2020 to 28.48% in December 2024. This upward trend indicates improved operational efficiency and effective cost management within the company. In particular, the pretax margin saw significant growth from 2020 to 2021, reaching 28.07%, followed by relatively stable performance around the mid-20s range in the subsequent years.

IDEXX Laboratories Inc's ability to maintain a pretax margin above 25% demonstrates a healthy profitability level, signaling that the company is effectively converting its revenue into pre-tax profits. This metric reflects the company's strong financial health and competitive position in the industry. The consistent pretax margin growth suggests that IDEXX Laboratories Inc is managing its expenses well while generating revenue efficiently, which bodes well for its financial sustainability and long-term success.