Meta Platforms Inc. (META)

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 70,663,000 47,428,000 28,819,000 47,284,000 33,180,000
Revenue US$ in thousands 163,811,000 134,090,000 116,352,000 117,774,000 85,822,000
Pretax margin 43.14% 35.37% 24.77% 40.15% 38.66%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $70,663,000K ÷ $163,811,000K
= 43.14%

Meta Platforms Inc.'s pretax margin has shown varying levels over the years. In December 2020, the pretax margin was at 38.66%, indicating that the company retained 38.66% of its revenue before paying taxes. By December 2021, the pretax margin increased to 40.15%, suggesting improved profitability as the company retained a higher proportion of its revenue. However, in December 2022, the pretax margin decreased significantly to 24.77%, possibly indicating challenges or increased expenses impacting profitability.

The trend reversed in December 2023, with the pretax margin rising to 35.37%, indicating a recovery in profitability. Finally, by December 2024, Meta Platforms Inc.'s pretax margin reached 43.14%, showcasing robust profitability as the company retained 43.14% of its revenue before tax expenses.

Overall, the fluctuating pretax margin of Meta Platforms Inc. reflects the company's ability to generate profits before tax, with fluctuations possibly linked to changing business conditions, cost structures, or revenue streams.