Penumbra Inc (PEN)

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	79,650	3,892	-7,841	-34,463	51,589
Revenue	US$ in thousands	1,058,520	847,133	747,590	560,412	547,405
Pretax margin		7.52%	0.46%	-1.05%	-6.15%	9.42%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $79,650K ÷ $1,058,520K
= 7.52%

Penumbra Inc's pretax margin has fluctuated significantly over the past five years. The company's pretax margin was 7.52% in 2023, a substantial improvement from the previous year's 0.46%. The positive trend indicates that Penumbra has been able to effectively control its operating expenses and generate more profit before taxes relative to its revenue. However, it is important to note that in 2021 and 2020, the company experienced negative pretax margins of -1.40% and -6.78% respectively, reflecting challenges in managing costs and generating profits during those periods. The pretax margin of 9.16% in 2019 was the highest in the provided data, suggesting that Penumbra had a strong performance that year. Overall, Penumbra's pretax margin analysis highlights the company's ability to improve profitability over the years, although there have been fluctuations in performance.