Pacira BioSciences, Inc. (PCRX)

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	-63,106	61,701	13,302	56,404	20,089
Revenue	US$ in thousands	700,966	674,978	666,823	541,533	420,830
Pretax margin		-9.00%	9.14%	1.99%	10.42%	4.77%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-63,106K ÷ $700,966K
= -9.00%

Pacira BioSciences, Inc.'s pretax margin has exhibited fluctuations over the years based on the provided data. In December 2020, the pretax margin was reported at 4.77%, indicating that the company generated a profit before taxes equivalent to 4.77% of its total revenue.

There was a significant improvement in the pretax margin by December 2021, reaching 10.42%, suggesting enhanced operational efficiency or cost management that led to a higher level of profitability before taxes.

However, by December 2022, the pretax margin declined to 1.99%, indicating a decrease in the percentage of revenue remaining after accounting for operating expenses but before taxes. This could be due to various factors such as increased costs or lower revenue generation.

The pretax margin rebounded in December 2023 to 9.14%, showing a positive trend in profitability before taxes. This improvement could stem from strategic decisions taken to optimize the cost structure or increase sales.

In December 2024, the pretax margin turned negative at -9.00%, indicating that the company incurred a loss before tax deductions. This could be a concerning sign and may require further investigation into the factors contributing to the negative profitability.

Overall, while the company has experienced fluctuations in its pretax margin over the years, it is essential for Pacira BioSciences, Inc. to focus on maintaining a healthy pretax margin to sustain profitability and long-term growth.