The AES Corporation (AES)
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 | 1,738,000 | 510,000 | -281,000 | -542,000 | 262,000 |
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Pretax margin | 14.16% | 4.03% | -2.23% | -4.86% | 2.71% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,738,000K ÷ $12,278,000K
= 14.16%
The pretax margin of The AES Corporation has fluctuated over the past five years. In December 2020, the pretax margin was 2.71%, indicating that the company was able to generate 2.71 cents of profit before taxes for every dollar of revenue. However, the following year, the pretax margin dropped to -4.86%, suggesting that the company incurred more expenses than it generated in revenue before taxes.
In December 2022, the pretax margin improved to -2.23%, although it remained negative, reflecting ongoing challenges in the company's financial performance. By December 2023, The AES Corporation managed to achieve a pretax margin of 4.03%, indicating a positive turnaround in profitability.
The most significant improvement occurred by December 2024, with a pretax margin of 14.16%, demonstrating a substantial increase in profitability compared to the previous years. Overall, the volatility in The AES Corporation's pretax margin indicates fluctuations in financial performance and the company's ability to effectively manage costs and generate revenue.