Perdoceo Education Corp (PRDO)

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	192,121	134,269	149,067	146,740	92,410
Revenue	US$ in thousands	732,186	695,895	693,473	689,494	631,716
Pretax margin		26.24%	19.29%	21.50%	21.28%	14.63%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $192,121K ÷ $732,186K
= 26.24%

Perdoceo Education Corporation's pretax margin has shown a fluctuating trend over the past five years. The pretax margin increased significantly from 14.82% in 2019 to 21.36% in 2020, indicating improved profitability before taxes. In 2021, the pretax margin slightly increased to 21.51%, showing continued strength in the company's operating efficiency.

However, in 2022, there was a slight decline in the pretax margin to 19.31%, which could be a cause for concern as it indicates a decrease in profitability before taxes. Nonetheless, the company rebounded in 2023 with a pretax margin of 27.06%, marking a substantial improvement compared to the previous year and demonstrating the company's ability to generate higher pre-tax profits relative to its revenues.

Overall, while there have been fluctuations in Perdoceo Education Corporation's pretax margin in recent years, the company has shown the capacity to adapt and enhance its profitability performance, as evidenced by the significant improvement in 2023.