Innoviva Inc (INVA)

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 37,388 194,098 286,949 445,276 354,245
Revenue US$ in thousands 358,711 310,463 331,339 391,866 336,794
Pretax margin 10.42% 62.52% 86.60% 113.63% 105.18%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $37,388K ÷ $358,711K
= 10.42%

Innoviva Inc's pretax margin has exhibited a fluctuating trend over the years as per the provided data. The pretax margin, representing the company's profitability before accounting for taxes, stood at a robust 105.18% as of December 31, 2020, indicating a healthy earnings level relative to its revenue.

Subsequently, the pretax margin increased to 113.63% by December 31, 2021, demonstrating further profitability improvement. However, by December 31, 2022, the pretax margin dropped to 86.60%, suggesting a decrease in earnings relative to revenue compared to the previous year.

Continuing this trend, the pretax margin further declined to 62.52% by December 31, 2023, signaling a significant reduction in profitability. Notably, by December 31, 2024, Innoviva Inc's pretax margin experienced a substantial decrease to 10.42%, indicating a notable downturn in profitability compared to the prior years.

Overall, the decreasing pretax margin trend from 2020 to 2024 may signify various factors impacting the company's profitability, such as changes in revenue growth, cost structures, operational efficiency, or tax implications. Further analysis into the company's financial performance and operational strategies would be necessary to understand the underlying reasons for these fluctuations in the pretax margin.