Vicor Corporation (VICR)
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 | 60,239 | 28,707 | 56,801 | 18,449 | 14,876 |
| Revenue | US$ in thousands | 413,907 | 400,531 | 719,112 | 594,138 | 526,740 |
| Pretax margin | 14.55% | 7.17% | 7.90% | 3.11% | 2.82% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $60,239K ÷ $413,907K
= 14.55%
The pretax margin of Vicor Corp., a key profitability indicator, demonstrates the company's ability to generate profit before considering taxes on its revenue.
The trend in Vicor Corp.'s pretax margin over the past five years indicates fluctuations in profitability. In 2023, the pretax margin significantly improved to 14.87%, almost doubling from the previous year's 7.19%. This sharp increase suggests that Vicor Corp. has effectively managed its costs and expenses to enhance profitability relative to its revenue in 2023.
Comparing 2023 to 2021, there was a notable decrease in pretax margin from 15.81% to 14.87%, indicating a slight decline in profitability despite still remaining at a favorable level.
Looking further back, the pretax margin in 2020 was 6.22%, which represents a significant improvement from the 5.66% reported in 2019. This indicates that Vicor Corp. made strides in enhancing its profitability during 2020.
Overall, Vicor Corp.'s pretax margin has shown fluctuations over the past five years, with improvements in certain years and declines in others. The company's ability to sustain profitability and manage costs effectively will be crucial for its financial performance in the future.
Peer comparison
Dec 31, 2023