Smith AO Corporation (AOS)
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 | 733,500 | 313,700 | 282,000 | 238,400 | 223,700 | 648,400 | 670,100 | 656,100 | 625,600 | 595,700 | 566,600 | 502,300 | 443,900 | 407,500 | 383,000 | 428,200 | 472,100 | 511,400 | 530,100 | 544,000 |
| Revenue (ttm) | US$ in thousands | 3,840,800 | 3,786,500 | 3,723,200 | 3,730,700 | 3,744,500 | 3,805,900 | 3,847,700 | 3,742,800 | 3,534,600 | 3,375,000 | 3,219,800 | 3,022,300 | 2,889,000 | 2,805,400 | 2,772,100 | 2,872,700 | 2,984,200 | 3,045,800 | 3,072,800 | 3,141,800 |
| Pretax margin | 19.10% | 8.28% | 7.57% | 6.39% | 5.97% | 17.04% | 17.42% | 17.53% | 17.70% | 17.65% | 17.60% | 16.62% | 15.37% | 14.53% | 13.82% | 14.91% | 15.82% | 16.79% | 17.25% | 17.31% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $733,500K ÷ $3,840,800K
= 19.10%
The pretax margin of A.O. Smith Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the pretax margin was the highest at 19.04%, indicating that the company generated $0.1904 in pretax profit for every $1 of revenue. This represents a significant improvement compared to the previous quarters, with Q3 2023 showing a pretax margin of 8.25%, Q2 2023 at 7.55%, and Q1 2023 at 6.37%.
The trend over the past year shows a varying pretax margin, with Q4 2022 reporting a pretax margin of 5.96%, Q3 2022 at 17.00%, Q2 2022 at 17.39%, and Q1 2022 at 17.51%. This variability may indicate fluctuations in the company's profitability or cost management strategies.
Overall, while the Q4 2023 pretax margin reflected a significant improvement, further analysis is needed to understand the underlying factors driving these fluctuations and to assess the sustainability of the company's profitability in the future.
Peer comparison
Dec 31, 2023