Rambus Inc (RMBS)

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	200,043	187,160	-7,825	23,286	-36,539
Revenue	US$ in thousands	556,624	461,117	454,793	328,304	246,322
Pretax margin		35.94%	40.59%	-1.72%	7.09%	-14.83%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $200,043K ÷ $556,624K
= 35.94%

The pretax margin of Rambus Inc has shown significant fluctuations over the years based on the provided data. In December 2020, the company had a negative pretax margin of -14.83%, indicating that its expenses exceeded its revenues before accounting for taxes. However, by December 2021, the pretax margin improved to 7.09%, suggesting that the company was able to generate more income relative to its expenses.

In December 2022, the pretax margin decreased to -1.72%, indicating a return to negative territory, possibly due to a decrease in profitability or an increase in expenses. Subsequently, there was a notable turnaround in December 2023, with the pretax margin soaring to 40.59%, reflecting a significant increase in profitability.

By December 2024, the pretax margin remained high at 35.94%, indicating continued strong performance in generating income before taxes. Overall, the pretax margin of Rambus Inc has displayed a mix of negative and positive trends, showcasing the company's ability to manage its costs and earnings over the years.