Intuitive Surgical Inc (ISRG)

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	2,658,900	1,939,600	1,584,700	1,866,800	1,200,800
Revenue	US$ in thousands	8,961,500	7,616,100	6,548,300	5,970,600	4,546,000
Pretax margin		29.67%	25.47%	24.20%	31.27%	26.41%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $2,658,900K ÷ $8,961,500K
= 29.67%

The pretax margin of Intuitive Surgical Inc has shown some fluctuations over the past five years.

In 2020, the pretax margin stood at 26.41%, indicating that the company was able to generate a profit before accounting for income taxes equal to 26.41% of its total revenue.

By 2021, the pretax margin improved significantly to 31.27%, demonstrating increased efficiency in managing expenses and generating higher profits relative to revenue.

However, in 2022, there was a slight decline in the pretax margin to 24.20%, suggesting a potential increase in costs or a decrease in revenue compared to the previous year.

The following year, in 2023, the pretax margin increased slightly to 25.47%, indicating a modest improvement in profitability but not to the level seen in 2021.

Finally, by the end of 2024, the pretax margin rose to 29.67%, showing a positive trajectory in profitability, albeit not reaching the peak seen in 2021.

Overall, the pretax margin of Intuitive Surgical Inc has shown variability over the period, with improvements in some years and slight declines in others. It is important for the company to consistently monitor and manage its expenses and revenue generation to maintain a healthy pretax margin in the future.