Incyte Corporation (INCY)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	834,215	529,116	570,444	-232,218	486,791
Revenue	US$ in thousands	3,693,100	3,394,640	2,986,270	2,666,700	2,158,760
Pretax margin		22.59%	15.59%	19.10%	-8.71%	22.55%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $834,215K ÷ $3,693,100K
= 22.59%

Incyte Corp.'s pretax margin has shown fluctuating trends over the past five years. In 2023, the pretax margin stood at 22.57%, reflecting a significant improvement compared to the previous year when it was 15.59%. This increase indicates better profitability before accounting for taxes in 2023. In 2021, the company also posted a respectable pretax margin of 19.10%, indicating strong operational efficiency.

However, in 2020, Incyte Corp. reported a negative pretax margin of -8.71%, which could be a concerning sign as it indicates that the company's operating expenses exceeded its gross profit before accounting for taxes. The company rebounded strongly in 2019 with a pretax margin of 22.55%, demonstrating robust profitability before tax expenses.

Overall, while Incyte Corp. has displayed varying levels of pretax margin over the past five years, the recent improvement in 2023 is a positive sign for the company's financial performance. Monitoring this metric over time will be crucial to assess the company's ongoing profitability and operational efficiency.