Grand Canyon Education Inc (LOPE)

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	259,675	240,119	331,289	333,140	317,502
Revenue	US$ in thousands	960,866	911,304	897,963	839,694	767,332
Pretax margin		27.03%	26.35%	36.89%	39.67%	41.38%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $259,675K ÷ $960,866K
= 27.03%

Grand Canyon Education Inc's pretax margin has shown a decreasing trend over the past five years, declining from 40.78% in 2019 to 27.02% in 2023. This trend indicates that the company's profitability before income tax expenses has been decreasing.

The pretax margin of 27.02% in 2023 reflects that for every dollar of revenue generated, the company's earnings before tax represent 27.02 cents. Comparing this to the previous years, the downward trend in pretax margin suggests potential challenges in managing costs or generating revenue efficiently.

Further analysis would be needed to understand the specific factors driving this decline in pretax margin, such as changes in revenue growth, operating expenses, or other financial metrics impacting profitability. It is important for investors and stakeholders to monitor these trends to assess the company's financial health and profitability in the upcoming periods.