Innoviva Inc (INVA)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	37,388	73,895	152,998	198,082	194,098	68,209	268,681	283,371	286,949	408,126	244,879	360,563	445,276	479,545	406,855	388,792	354,245	333,752	340,874	279,252
Revenue (ttm)	US$ in thousands	365,623	363,089	340,840	318,478	313,895	290,426	290,424	317,652	331,339	373,216	403,821	396,407	391,866	374,662	365,494	343,634	336,794	322,289	299,350	284,511
Pretax margin		10.23%	20.35%	44.89%	62.20%	61.84%	23.49%	92.51%	89.21%	86.60%	109.35%	60.64%	90.96%	113.63%	127.99%	111.32%	113.14%	105.18%	103.56%	113.87%	98.15%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $37,388K ÷ $365,623K
= 10.23%

Innoviva Inc's pretax margin fluctuated over the period from March 31, 2020, to December 31, 2024. The pretax margin started at a high of 98.15% in March 2020, peaked at 127.99% in September 2021, and displayed varying trends thereafter. By June 30, 2022, the pretax margin decreased significantly to 60.64% and continued to decline to 10.23% by December 31, 2024.

The pretax margin measures the company's efficiency in generating profits before accounting for taxes as a percentage of its total revenue. A higher pretax margin indicates better efficiency in managing expenses and generating profits. The fluctuations in Innoviva Inc's pretax margin could be influenced by changes in revenue, operating expenses, cost of goods sold, or non-operating income.

It is essential for Innoviva Inc to closely monitor the pretax margin to ensure sustainable profitability. A declining pretax margin could indicate potential inefficiencies in cost management or a decrease in revenue. Management may need to take corrective actions to improve profitability and enhance the company's financial performance.