American Electric Power Co Inc (AEP)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,927,900 | 2,262,700 | 2,312,600 | 2,603,600 | 2,240,600 |
| Revenue | US$ in thousands | 19,721,300 | 18,982,300 | 19,639,500 | 16,792,000 | 14,918,500 |
| Pretax margin | 14.85% | 11.92% | 11.78% | 15.51% | 15.02% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,927,900K ÷ $19,721,300K
= 14.85%
American Electric Power Co Inc's pretax margin has exhibited fluctuation over the past five years. In December 2020, the pretax margin stood at 15.02%, which slightly increased to 15.51% by December 2021. However, there was a notable decline in the pretax margin to 11.78% by December 2022, followed by a marginal recovery to 11.92% by December 2023. Subsequently, the pretax margin recovered significantly to 14.85% by December 2024.
The fluctuations in the pretax margin indicate variability in the company's ability to generate profits before taxes relative to its revenue. The company may want to further analyze the factors influencing these fluctuations to ensure sustained profitability and operational efficiency in the coming years.
Peer comparison
Dec 31, 2024