United Therapeutics Corporation (UTHR)
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 | 1,274,300 | 950,600 | 593,900 | 638,900 | -165,000 |
| Revenue | US$ in thousands | 2,268,200 | 1,903,900 | 1,666,900 | 1,483,300 | 1,448,800 |
| Pretax margin | 56.18% | 49.93% | 35.63% | 43.07% | -11.39% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,274,300K ÷ $2,268,200K
= 56.18%
The pretax margin of United Therapeutics Corp has shown a fluctuating trend over the past five years. In 2019, the company experienced a negative pretax margin of -11.39%, indicating that its expenses exceeded its earnings before taxes. However, there was a significant improvement in profitability in the following years, with pretax margins steadily increasing to 43.07% in 2020, 35.24% in 2021, 49.09% in 2022, and reaching 54.75% in 2023.
The notable upward trend in pretax margin implies that United Therapeutics Corp has effectively managed its costs and expenses relative to its revenue, resulting in higher profitability before considering tax implications. This improvement suggests the company may have implemented cost-cutting measures, operational efficiency enhancements, or revenue growth strategies that have positively impacted its overall financial performance. It indicates a strong financial position and operational efficiency, which can be favorable for the company's stakeholders.
Peer comparison
Dec 31, 2023