Allegion PLC (ALLE)
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 | 698,800 | 617,200 | 514,500 | 524,000 | 365,400 |
| Revenue | US$ in thousands | 3,772,200 | 3,650,800 | 3,271,900 | 2,867,400 | 2,719,900 |
| Pretax margin | 18.52% | 16.91% | 15.72% | 18.27% | 13.43% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $698,800K ÷ $3,772,200K
= 18.52%
The pretax margin of Allegion PLC has shown a generally positive trend over the past five years, increasing from 13.43% at the end of 2020 to 18.52% at the end of 2024. This indicates that Allegion has been able to efficiently manage its operating expenses and generate higher operating income relative to its total revenue. The company's ability to improve its pretax margin over this period suggests a strengthening operational efficiency and profitability, which could be attributed to cost-control measures, increased revenue generation, or a combination of both. Overall, the consistent growth in pretax margin reflects positively on Allegion's financial performance and management effectiveness.