APA Corporation (APA)
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 | 1,535,000 | 2,883,000 | 5,734,000 | 1,891,000 | -4,840,000 |
| Revenue | US$ in thousands | 9,737,000 | 8,279,000 | 11,075,000 | 7,985,000 | 4,435,000 |
| Pretax margin | 15.76% | 34.82% | 51.77% | 23.68% | -109.13% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,535,000K ÷ $9,737,000K
= 15.76%
APA Corporation's pretax margin has shown significant variability over the past five years.
In December 2020, the company reported a negative pretax margin of -109.13%, indicating that its expenses exceeded its pre-tax income during that period. This might raise concerns about the company's cost management and operational efficiency.
However, there was a substantial improvement in the pretax margin in December 2021, where it surged to 23.68%. This positive trend continued in December 2022, with a further increase to 51.77%, suggesting that the company was able to enhance its profitability and control costs effectively.
Although there was a slight decline in the pretax margin in December 2023 to 34.82%, it still remained at a relatively healthy level. The latest data available for December 2024 shows a pretax margin of 15.76%, indicating a decrease compared to the previous year but still reflecting a positive profitability level.
Overall, the trend in APA Corporation's pretax margin over the five-year period indicates both challenges and successes in managing costs and generating pre-tax income. Investors and stakeholders may want to further investigate the drivers behind these fluctuations to assess the company's financial health and future prospects.
Peer comparison
Dec 31, 2024