Amphenol Corporation (APH)
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 | 2,437,300 | 2,452,900 | 1,999,900 | 1,516,700 | 1,486,900 |
| Revenue | US$ in thousands | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 | 8,225,400 |
| Pretax margin | 19.41% | 19.43% | 18.39% | 17.64% | 18.08% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,437,300K ÷ $12,554,700K
= 19.41%
Amphenol Corp.'s pretax margin has shown a generally positive trend over the past five years, indicating efficient cost management and revenue generation. The pretax margin increased from 18.19% in 2019 to 19.55% in 2020 and has been maintained at that level in both 2022 and 2023. This suggests that the company has been effective in controlling its operating expenses relative to its pre-tax income. The consistent pretax margin above 18% highlights the company's ability to generate profits before accounting for taxes, which bodes well for its overall financial health and sustainability.