Masimo Corporation (MASI)

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	-305,300	79,500	81,900	86,800	88,100	120,700	158,700	160,500	193,400	214,458	230,029	268,664	274,483	264,391	257,875	256,265	263,702	261,405	254,705	246,613
Revenue (ttm)	US$ in thousands	2,027,700	2,041,700	2,025,400	1,980,800	2,054,500	2,137,700	2,211,700	2,330,200	2,062,041	1,774,419	1,519,833	1,244,351	1,239,153	1,206,629	1,177,327	1,173,162	1,143,744	1,096,200	1,047,099	975,798
Pretax margin		-15.06%	3.89%	4.04%	4.38%	4.29%	5.65%	7.18%	6.89%	9.38%	12.09%	15.14%	21.59%	22.15%	21.91%	21.90%	21.84%	23.06%	23.85%	24.32%	25.27%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-305,300K ÷ $2,027,700K
= -15.06%

Masimo Corporation's pretax margin has exhibited a general declining trend over the period from March 31, 2020, to December 31, 2024. The pretax margin started relatively strong at around 25% in March 2020 but experienced a gradual decrease reaching a low of -15.06% by December 31, 2024. This indicates a significant deterioration in the company's ability to generate profits before accounting for taxes, which could be a cause for concern.

The decreasing trend in the pretax margin could be attributed to various factors such as increasing operating expenses, declining revenues, or inefficiencies in the company's cost structure. It is important for stakeholders to closely monitor the pretax margin as it provides insights into the company's operational efficiency and profitability. Masimo Corporation may need to implement strategies to improve its pretax margin in order to enhance overall financial performance and sustainability.