Advanced Energy Industries Inc (AEIS)
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 | 119,996 | 239,510 | 148,740 | 157,671 | 75,640 |
| Revenue | US$ in thousands | 1,638,800 | 1,842,780 | 1,450,490 | 1,409,450 | 801,389 |
| Pretax margin | 7.32% | 13.00% | 10.25% | 11.19% | 9.44% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $119,996K ÷ $1,638,800K
= 7.32%
The pretax margin of Advanced Energy Industries Inc. has shown fluctuations over the past five years. In 2023, the pretax margin decreased to 7.40% from 13.10% in 2022, indicating a decline in the company's ability to generate profits before taxes relative to its revenue. This decrease may be attributed to various factors such as changes in expenses, pricing strategies, or economic conditions.
Comparing the pretax margin to earlier years, it is lower than the 10.21% recorded in 2021 and the 11.17% in 2020. This downward trend suggests a potential decline in the company's operational efficiency and cost management leading to reduced profitability.
However, it is worth noting that the 7.40% pretax margin in 2023 is higher than the 8.52% recorded in 2019, indicating some improvement in profitability compared to five years ago. It is essential for Advanced Energy Industries Inc. to monitor and analyze the factors impacting its pretax margin to make strategic adjustments and enhance overall financial performance.
Peer comparison
Dec 31, 2023