Smith AO Corporation (AOS)
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 | 733,500 | 223,700 | 625,600 | 443,900 | 472,100 |
| Revenue | US$ in thousands | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 | 2,981,700 |
| Pretax margin | 19.10% | 5.97% | 17.70% | 15.37% | 15.83% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $733,500K ÷ $3,840,800K
= 19.10%
The pretax margin of A.O. Smith Corp. has displayed fluctuations over the past five years. In 2023, the pretax margin significantly increased to 19.04%, indicating an improvement in the company's ability to generate profits before accounting for taxes. This surge is notably higher compared to the prior year's pretax margin of 5.96%, reflecting a substantial enhancement in operational efficiency and cost management.
The pretax margin in 2021 stood at 17.68%, demonstrating a strong performance in profitability, albeit slightly lower than the recent year. The year 2020 also showed a healthy pretax margin of 15.33%, showcasing consistent profitability levels for the company. Similarly, in 2019, the pretax margin was 15.78%, indicating a stable financial performance.
Overall, the varying pretax margins over the past five years suggest fluctuations in the company's profitability levels, with the most recent year witnessing a significant improvement compared to previous years. A.O. Smith Corp. may need to maintain this positive trend in pretax margin to ensure sustained profitability and operational excellence in the future.
Peer comparison
Dec 31, 2023