Supernus Pharmaceuticals Inc (SUPN)

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	2,769	60,743	73,175	168,648	147,487
Revenue	US$ in thousands	607,521	673,056	560,079	500,962	392,755
Pretax margin		0.46%	9.02%	13.07%	33.66%	37.55%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,769K ÷ $607,521K
= 0.46%

The pretax margin of Supernus Pharmaceuticals Inc has exhibited a declining trend over the past five years, decreasing from 37.55% in 2019 to 0.46% in 2023. This decline suggests a reduction in the company's profitability before taking into account income taxes, indicating potential challenges in managing costs or generating revenue. The sharp drop in pretax margin from 2022 to 2023 is particularly concerning, as it signifies a significant decrease in the company's ability to convert sales into pre-tax profits. Further analysis into the factors influencing this decline is recommended to determine the root causes and develop strategies for improvement.