Api Group Corp (APG)
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 | 330,000 | 232,000 | 93,000 | 79,000 | -184,000 |
| Revenue | US$ in thousands | 7,018,000 | 6,928,000 | 6,558,000 | 3,940,000 | 3,587,000 |
| Pretax margin | 4.70% | 3.35% | 1.42% | 2.01% | -5.13% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $330,000K ÷ $7,018,000K
= 4.70%
The analysis of Api Group Corp's pretax margin over the period from December 31, 2020, to December 31, 2024, indicates a notable improvement in profitability before taxes. In 2020, the pretax margin was negative at -5.13%, reflecting that the company's earnings before taxes were insufficient to cover its operating expenses or that it experienced losses during that year. This negative margin suggests challenges in cost management, revenue generation, or possibly significant one-time expenses.
By the end of 2021, the pretax margin turned positive at 2.01%, marking a substantial recovery from the previous year's loss. This transition to profitability demonstrates an enhancement in the company's operational efficiency, revenue growth, or cost control measures implemented during this period.
In 2022, the pretax margin experienced a slight decline to 1.42%, indicating a potential contraction in profitability or increased expenses relative to revenues. Despite this decrease, it remained positive, continuing the trend of operational improvement.
The year 2023 saw a further increase in the pretax margin, rising to 3.35%. This growth suggests ongoing gains in profitability, possibly driven by effective cost management, favorable market conditions, or revenue expansion initiatives.
Looking forward into 2024, the pretax margin elevates to 4.70%, reflecting continued positive momentum. This upward trend indicates sustained profitability and possibly an improving competitive position or successful strategic adjustments.
Overall, the trajectory from negative to positive margins over this four-year span underscores a significant turnaround in Api Group Corp's financial performance. The steady increase in pretax margin highlights the company's progression toward greater profitability and operational stability.
Peer comparison
Dec 31, 2024