Penumbra Inc (PEN)

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	20,869	79,650	3,892	-10,502	-38,018
Revenue	US$ in thousands	1,194,620	1,058,520	847,133	747,590	560,412
Pretax margin		1.75%	7.52%	0.46%	-1.40%	-6.78%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $20,869K ÷ $1,194,620K
= 1.75%

Penumbra Inc's pretax margin has experienced fluctuations over the period from December 31, 2020, to December 31, 2024.

The pretax margin was negative in 2020 at -6.78%, indicating that the company's expenses exceeded its revenues before accounting for taxes. However, there was a notable improvement in 2021, with the pretax margin decreasing to -1.40%, suggesting that the company made progress in managing its costs relative to its revenue.

By 2022, Penumbra Inc achieved a positive pretax margin of 0.46%, signifying that the company was able to generate profits before taxes. The positive trend continued in 2023, with a pretax margin of 7.52%, indicating strong profitability and efficient cost management.

However, in 2024, there was a slight decrease in the pretax margin to 1.75%, which may indicate some challenges in maintaining the level of profitability seen in the previous year.

Overall, Penumbra Inc's pretax margin has shown improvement over the years, reflecting the company's ability to effectively control its costs and generate profits. It is essential for the company to continue monitoring and managing its expenses to sustain and enhance its profitability in the future.