Archrock Inc (AROC)
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 | 142,247 | 60,589 | 38,961 | -85,982 | 58,185 |
| Revenue | US$ in thousands | 889,048 | 784,803 | 703,584 | 775,926 | 873,167 |
| Pretax margin | 16.00% | 7.72% | 5.54% | -11.08% | 6.66% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $142,247K ÷ $889,048K
= 16.00%
The pretax margin of Archrock Inc has shown a fluctuating trend over the past five years. In 2023, the pretax margin improved significantly to 14.36% from 7.17% in 2022. This indicates that the company's profitability before taxes increased notably in the most recent year. Moreover, the pretax margin in 2023 is substantially higher compared to the margins in 2021 and 2020, reflecting a positive trend in the company's ability to generate profits.
However, it's important to note that in 2020, the company reported a negative pretax margin of -9.83%, indicating that Archrock Inc incurred a loss before taxes during that year. The company managed to recover from this negative trend and return to profitability in the subsequent years. Overall, the fluctuating pretax margin of Archrock Inc suggests fluctuations in its operational efficiency and cost management over the past five years.
Peer comparison
Dec 31, 2023