American Electric Power Company Inc (AEP)

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	2,778,800	2,518,800	2,443,200	2,473,300	2,833,400	2,319,300	2,680,400	2,745,000	2,603,600	2,552,800	2,434,400	2,328,400	2,240,600	1,931,600	1,958,300	1,831,800	1,907,400	2,184,900	1,907,700	2,101,400
Revenue (ttm)	US$ in thousands	18,982,300	19,286,200	19,470,600	19,737,800	19,639,500	18,819,800	17,916,700	17,103,500	16,792,000	16,341,200	15,784,600	15,452,100	14,918,500	14,923,900	15,172,500	15,252,100	15,561,400	15,746,500	15,764,600	16,204,200
Pretax margin		14.64%	13.06%	12.55%	12.53%	14.43%	12.32%	14.96%	16.05%	15.51%	15.62%	15.42%	15.07%	15.02%	12.94%	12.91%	12.01%	12.26%	13.88%	12.10%	12.97%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,778,800K ÷ $18,982,300K
= 14.64%

The pretax margin of American Electric Power Company Inc. has shown a gradual decline over the past eight quarters. Starting at 16.03% in Q1 2022, the pretax margin decreased to 14.96% in Q2 2022, and continued to decrease further in subsequent quarters to reach 11.94% in Q4 2023. While there was a slight uptick in Q3 2022, the overall trend indicates a reduction in the company's ability to generate profits before accounting for taxes. This declining trend may signal challenges in controlling costs relative to revenue generation or changes in the company's operating efficiency. Further analysis is recommended to identify the specific factors contributing to the decreasing pretax margin and to formulate strategies for improvement.