Archrock Inc (AROC)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 142,247 | 111,763 | 89,088 | 80,568 | 60,589 | 52,891 | 46,483 | 30,432 | 38,961 | 39,925 | 50,836 | 2,351 | -85,982 | -84,805 | -87,090 | -36,004 | 58,185 | 68,723 | 59,968 | 47,724 |
| Revenue (ttm) | US$ in thousands | 884,635 | 850,029 | 813,492 | 785,951 | 753,160 | 724,464 | 705,631 | 683,916 | 685,067 | 688,377 | 699,129 | 720,039 | 768,969 | 841,112 | 878,250 | 896,466 | 884,844 | 872,016 | 863,322 | 858,072 |
| Pretax margin | 16.08% | 13.15% | 10.95% | 10.25% | 8.04% | 7.30% | 6.59% | 4.45% | 5.69% | 5.80% | 7.27% | 0.33% | -11.18% | -10.08% | -9.92% | -4.02% | 6.58% | 7.88% | 6.95% | 5.56% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $142,247K ÷ $884,635K
= 16.08%
Archrock Inc's pretax margin has shown a consistent upward trend over the past eight quarters. The pretax margin increased from 3.89% in Q1 2022 to 14.36% in Q4 2023, reflecting a notable improvement in the company's profitability. This indicates that the company has been effectively managing its operating expenses and generating more income before taxes relative to its total revenue.
The pretax margin for each quarter demonstrates a positive trajectory, indicating that the company has been able to enhance its operational efficiency and control costs effectively. The significant increase in pretax margin from Q1 2022 to Q4 2023 suggests that Archrock Inc has implemented successful strategies to drive profitability and improve overall financial performance.
Overall, the consistent improvement in Archrock Inc's pretax margin signifies the company's ability to generate higher profits relative to its total revenue, which is a positive indicator of its financial health and operational effectiveness. It also reflects the management's commitment to achieving sustainable growth and maximizing shareholder value.
Peer comparison
Dec 31, 2023