Masimo Corporation (MASI)
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 | 88,100 | 193,400 | 274,439 | 263,702 | 234,166 |
| Revenue | US$ in thousands | 2,053,900 | 2,073,900 | 1,239,150 | 1,143,740 | 937,837 |
| Pretax margin | 4.29% | 9.33% | 22.15% | 23.06% | 24.97% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $88,100K ÷ $2,053,900K
= 4.29%
Masimo Corporation's pretax margin has exhibited a declining trend over the past five years. The pretax margin decreased from 24.97% in 2019 to 4.29% in 2023, indicating a significant drop in profitability. This downward trend suggests that the company's ability to generate profits before taxes relative to its total revenue has weakened over the years. Several factors could contribute to this decline, such as increasing costs, pricing pressures, or a shift in the revenue mix towards lower margin products or services. Management should closely monitor and address these factors to improve the company's financial performance and enhance shareholder value.
Peer comparison
Dec 31, 2023