Innovex International, Inc (INVX)

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	142,812	13,468	72,929	13,695	-62,049
Revenue	US$ in thousands	660,803	424,060	467,189	294,841	364,973
Pretax margin		21.61%	3.18%	15.61%	4.64%	-17.00%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $142,812K ÷ $660,803K
= 21.61%

Based on the provided data, the pretax margin of Innovex International, Inc. exhibits significant fluctuations over the specified period. As of December 31, 2020, the company experienced a negative pretax margin of -17.00%, indicating operational losses or significant expenses exceeding gross profit during that year. This negative margin reflects challenges in profitability or potentially rapid investment phases impacting pre-tax results.

By December 31, 2021, the pretax margin improved markedly to 4.64%, signaling the company's transition toward profitability, possibly due to operational improvements, cost management, or revenue growth initiatives. This positive margin suggests that the company was able to generate pre-tax profits relative to its revenues, reversing the prior year's losses.

The upward trend continued into December 31, 2022, with the pretax margin reaching 15.61%, reflecting further strengthening of profitability and efficient cost controls. This period likely indicates robust revenue performance combined with manageable operating expenses.

However, in the subsequent year ending December 31, 2023, the pretax margin declined sharply to 3.18%, suggesting a deterioration in profitability. This decline could be attributed to increased costs, margin pressures, or unforeseen expenses impacting pre-tax earnings.

Finally, for December 31, 2024, the pretax margin significantly increased to 21.61%, representing a strong recovery and substantial profitability. This level of margin indicates that the company effectively restored and perhaps even enhanced its operational profitability, likely through improved sales performance, cost efficiencies, or strategic initiatives.

Overall, the pretax margin data illustrates a history of volatility with periods of substantial losses, rapid recovery, and fluctuations indicative of dynamic operational or market conditions affecting Innovex International, Inc.'s profitability trajectory.