APA Corporation (APA)
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 | 2,212,000 | 5,188,000 | 1,640,000 | -4,796,000 | -2,879,000 |
| Revenue | US$ in thousands | 8,279,000 | 1,874,000 | 7,985,000 | 4,308,000 | 6,553,000 |
| Pretax margin | 26.72% | 276.84% | 20.54% | -111.33% | -43.93% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,212,000K ÷ $8,279,000K
= 26.72%
APA Corporation's pretax margin has fluctuated over the past five years. In 2023, the pretax margin stood at 34.75%, showing a decrease from the previous year's level of 51.09%. This decline may indicate a decrease in the company's ability to generate profits before considering taxes.
In 2021, the pretax margin was 23.02%, which was an improvement compared to 2020 when the company reported a negative pretax margin of -107.58%. The negative pretax margin in 2020 suggests that the company incurred significant losses before accounting for taxes, indicating potential financial distress.
Similarly, in 2019, APA Corporation reported a pretax margin of -47.24%, indicating another year of substantial pre-tax losses. It is essential for APA Corporation to closely monitor and manage its cost structure and revenue generation to ensure sustainable profitability and financial stability in the future.
Peer comparison
Dec 31, 2023