Aecom Technology Corporation (ACM)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 111,384 | 446,662 | 262,196 | -140,617 | -247,552 |
| Revenue | US$ in thousands | 14,378,500 | 13,148,200 | 13,340,900 | 13,240,000 | 13,642,500 |
| Pretax margin | 0.77% | 3.40% | 1.97% | -1.06% | -1.81% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $111,384K ÷ $14,378,500K
= 0.77%
The pretax margin is a crucial metric that indicates the efficiency of a company in generating profits before accounting for taxes. A higher pretax margin implies better profitability, all else being equal.
Looking at AECOM's pretax margin over the past five years, we observe fluctuations in the company's profitability before taxes. In 2023, AECOM's pretax margin stood at 1.48%, a decrease from the previous year's 4.19%. As of 2023, the pretax margin was substantially lower than the 5-year high of 4.19% in 2022. This decrease may indicate a potential decline in the company's ability to generate profits before taxes or an increase in operating expenses relative to revenue.
Furthermore, in 2021, AECOM's pretax margin was 3.06%, showing an improvement from the prior year. This increase in profitability from 2020 to 2021 suggests enhanced operational efficiency or better cost management by the company.
The pretax margin was positive in all years except for 2019 when it stood at -0.91%, signifying a loss before taxes. The negative pretax margin in 2019 may indicate operational challenges or extraordinary expenses that impacted the company's profitability.
In summary, AECOM's pretax margin has shown variability over the past five years. While 2023 saw a decrease in profitability before taxes, 2021 demonstrated an improvement in the company's ability to generate profits. This trend underscores the importance of monitoring AECOM's operational efficiency and cost management strategies to sustain and enhance its profitability in the future.
Peer comparison
Sep 30, 2023