Zimmer Biomet Holdings Inc (ZBH)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,066,200	707,100	665,400	588,100	343,700	305,600	302,100	278,100	455,100	804,800	883,100	487,600	-234,900	-182,900	-251,400	111,000	905,900	-247,100	-277,100	-201,300
Revenue (ttm)	US$ in thousands	7,171,500	7,054,100	6,993,800	6,933,800	6,780,400	6,827,800	7,061,000	7,290,300	7,452,200	7,716,200	7,722,600	6,923,200	6,840,900	6,881,300	6,840,200	7,596,700	7,805,400	7,750,700	7,677,500	7,646,100
Pretax margin		14.87%	10.02%	9.51%	8.48%	5.07%	4.48%	4.28%	3.81%	6.11%	10.43%	11.44%	7.04%	-3.43%	-2.66%	-3.68%	1.46%	11.61%	-3.19%	-3.61%	-2.63%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,066,200K ÷ $7,171,500K
= 14.87%

Zimmer Biomet Holdings Inc's pretax margin has been showing a positive trend over the past eight quarters, indicating an improvement in the company's profitability before accounting for taxes. The pretax margin has been steadily increasing from 3.91% in Q1 2022 to 14.43% in Q4 2023. This sustained growth suggests that the company has been effectively managing its costs and generating higher revenues compared to its operating expenses. It is noteworthy that the pretax margin has more than doubled within this timeframe, reflecting the company's ability to enhance its operational efficiency and profitability. Overall, the consistent improvement in Zimmer Biomet Holdings Inc's pretax margin signals positive financial performance and potential for sustainable profitability in the future.