The AES Corporation (AES)
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 | 510,000 | -302,000 | -76,000 | -233,000 | -281,000 | -297,000 | -394,000 | -227,000 | -542,000 | 777,000 | -172,000 | -111,000 | 262,000 | -245,000 | 575,000 | 619,000 | 655,000 | 1,010,000 | 917,000 | 1,265,000 |
| Revenue (ttm) | US$ in thousands | 12,668,000 | 12,760,000 | 12,953,000 | 13,004,000 | 12,617,000 | 12,327,000 | 11,736,000 | 11,358,000 | 11,141,000 | 10,931,000 | 10,440,000 | 9,957,000 | 9,660,000 | 9,531,000 | 9,611,000 | 9,877,000 | 10,189,000 | 10,380,000 | 10,592,000 | 10,646,000 |
| Pretax margin | 4.03% | -2.37% | -0.59% | -1.79% | -2.23% | -2.41% | -3.36% | -2.00% | -4.86% | 7.11% | -1.65% | -1.11% | 2.71% | -2.57% | 5.98% | 6.27% | 6.43% | 9.73% | 8.66% | 11.88% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $510,000K ÷ $12,668,000K
= 4.03%
To analyze AES Corp.'s pretax margin performance, we observe a fluctuating trend over the past eight quarters.
In Q4 2023, AES Corp. reported a pretax margin of 0.57%, showing a slight improvement from the negative pretax margins in the preceding three quarters. This positive trend could indicate enhanced cost management or revenue growth in the most recent quarter.
However, although the Q4 2023 pretax margin is an improvement compared to the previous quarters, it is essential to note that the margin remains relatively low, indicating that AES Corp. is generating minimal profits before taxes relative to its total revenue or operating costs.
Looking back further, in Q3 and Q2 2023, the company had negative pretax margins of -2.09% and -0.59%, respectively. This suggests that AES Corp. incurred losses before taxes during these periods, implying potential challenges in controlling costs or generating adequate revenues to cover expenses.
Similarly, in Q1 2023, the pretax margin was -1.61%, indicating continued financial difficulties for the company in that period.
Comparing to the same quarters in the previous year, Q4 2022, Q3 2022, Q2 2022, and Q1 2022, AES Corp. also reported negative pretax margins ranging from -1.90% to -7.36%. This demonstrates a consistent struggle to generate profits before taxes throughout the past year.
Overall, AES Corp.'s pretax margin analysis reveals a mixed performance with periodic improvements but an underlying trend of low or negative profitability. It may be crucial for the company to focus on enhancing operational efficiency, cost control, and revenue generation strategies to improve its financial performance in the future.