Smith AO Corporation (AOS)
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 | 701,000 | 733,500 | 223,700 | 625,600 | 443,900 |
| Revenue | US$ in thousands | 3,818,100 | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 |
| Pretax margin | 18.36% | 19.10% | 5.97% | 17.70% | 15.37% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $701,000K ÷ $3,818,100K
= 18.36%
Based on the provided data, Smith AO Corporation's pretax margin has experienced fluctuations over the past five years. The pretax margin increased from 15.37% as of December 31, 2020, to 17.70% as of December 31, 2021, indicating improved profitability before taxes. However, there was a significant decline in pretax margin to 5.97% as of December 31, 2022, which suggests a potential decrease in the company's efficiency in generating profits relative to its revenue.
Subsequently, the pretax margin recovered and surged to 19.10% as of December 31, 2023, showing a strong rebound in profitability. This improvement was maintained as the pretax margin slightly decreased to 18.36% as of December 31, 2024. Overall, the trend in pretax margin demonstrates both periods of growth and decline, with the company effectively managing its pre-tax profitability in recent years. Additional analysis and comparison to industry benchmarks would be beneficial to provide further insights into Smith AO Corporation's financial performance.
Peer comparison
Dec 31, 2024