American Electric Power Company Inc (AEP)

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	2,262,700	2,312,600	2,603,600	2,240,600	1,908,200
Revenue	US$ in thousands	18,982,300	19,639,500	16,792,000	14,918,500	15,561,400
Pretax margin		11.92%	11.78%	15.51%	15.02%	12.26%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,262,700K ÷ $18,982,300K
= 11.92%

American Electric Power Company Inc.'s pretax margin has shown some variability over the past five years. The pretax margin was 11.94% in 2023, a slight increase from 11.77% in 2022. However, it was lower compared to 15.51% in 2021 and 15.00% in 2020. The lowest pretax margin during this period was 12.25% in 2019.

The downward trend from 2021 to 2023 may indicate a decrease in the company's profitability before accounting for taxes in recent years. It is essential for investors and stakeholders to closely monitor the company's operational efficiency and cost management strategies to ensure sustainable profitability in the future.