The AES Corporation (AES)
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 | 510,000 | -281,000 | -542,000 | 262,000 | 655,000 |
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Pretax margin | 4.03% | -2.23% | -4.86% | 2.71% | 6.43% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $510,000K ÷ $12,668,000K
= 4.03%
The pretax margin of AES Corp. has shown significant variability over the five years analyzed. The pretax margin was 0.57% in 2023, a notable improvement from the negative pretax margin of -1.90% in 2022 and -9.77% in 2021, indicating better management of expenses and higher profitability. However, the pretax margin was significantly higher at 8.14% in 2019 and 3.78% in 2020, suggesting potential challenges or changes impacting the company's financial performance in the more recent years. Further analysis of the company's financial strategies and operational efficiencies may be necessary to understand the fluctuations in the pretax margin.