Merit Medical Systems Inc (MMSI)

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	149,993	148,315	141,880	120,937	112,089	110,777	98,157	93,958	82,629	72,655	69,230	55,394	53,917	46,981	30,620	1,455	-13,231	-34,438	-37,944	-6,645
Revenue (ttm)	US$ in thousands	1,346,822	1,311,388	1,282,089	1,260,472	1,241,203	1,213,421	1,188,414	1,165,681	1,144,662	1,131,114	1,111,439	1,096,568	1,069,451	1,049,645	1,025,702	962,507	955,554	955,472	953,411	990,405
Pretax margin		11.14%	11.31%	11.07%	9.59%	9.03%	9.13%	8.26%	8.06%	7.22%	6.42%	6.23%	5.05%	5.04%	4.48%	2.99%	0.15%	-1.38%	-3.60%	-3.98%	-0.67%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $149,993K ÷ $1,346,822K
= 11.14%

The pretax margin of Merit Medical Systems Inc has shown a positive trend over the analyzed period from March 31, 2020, to December 31, 2024. The company's pretax margin started in negative territory, improving gradually over time.

Initially, for the first few quarters, the pretax margin was negative, indicating that the company's pre-tax earnings were insufficient to cover its operating expenses and taxes. However, from March 31, 2021, the pretax margin turned positive, indicating that the company started generating more earnings than it incurred in expenses before accounting for taxes.

The positive trend continued steadily, with the pretax margin increasing consistently from period to period. By December 31, 2024, the pretax margin reached its highest point at 11.14%. This signifies an improvement in the company's operational efficiency, cost management, and overall profitability.

The upward trend in pretax margin is generally considered a positive indicator of a company's financial performance and management effectiveness. It suggests that Merit Medical Systems Inc has been able to enhance its earnings relative to its revenue and operating costs over the analyzed period. Investors and stakeholders may view this as a favorable sign of the company's profitability and potential for growth.