Waters Corporation (WAT)

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	736,243	837,846	806,193	610,914	678,239
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Pretax margin		25.90%	28.97%	29.47%	26.45%	28.87%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $736,243K ÷ $2,842,300K
= 25.90%

The pretax margin of Waters Corp. has displayed fluctuations over the past five years. In 2023, the pretax margin decreased to 24.90% from 28.19% in 2022, showing a decline in profitability before taxes. This drop is notable compared to the slight fluctuations observed in the previous years, where the pretax margin ranged from 28.18% in 2019 to 28.94% in 2021.

The downward trend in pretax margin in 2023 could be indicative of increased operating expenses, reduced revenues, or a combination of both factors affecting the company's profitability. Further analysis of the individual components of operating expenses, revenues, and potential changes in the company's business operations may be necessary to identify the specific reasons behind this decline in pretax margin.