Allegheny Technologies Incorporated (ATI)
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 | 282,600 | 146,400 | -11,400 | -1,494,900 | 224,000 |
| Revenue | US$ in thousands | 4,050,200 | 3,594,600 | 2,646,300 | 2,858,800 | 4,079,500 |
| Pretax margin | 6.98% | 4.07% | -0.43% | -52.29% | 5.49% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $282,600K ÷ $4,050,200K
= 6.98%
ATI Inc's pretax margin has shown significant fluctuations over the past five years. The company experienced a negative pretax margin of -49.69% in 2020, indicating that its expenses exceeded its revenues before accounting for taxes. However, there has been a notable improvement in the following years, with the pretax margin increasing to 0.38% in 2021, 4.22% in 2022, and further to 7.07% in 2023.
The upward trend in pretax margin signifies that ATI Inc has been able to better control its operating expenses relative to its revenues in recent years. This may be attributed to cost-cutting measures, operational efficiency improvements, or revenue growth outpacing expenses. The positive pretax margins in 2021, 2022, and 2023 indicate that the company is generating profit before accounting for taxes, which is a positive sign for its financial health.
Overall, the improving trend in ATI Inc's pretax margin suggests a positive trajectory in the company's profitability and efficiency in managing its costs over the past few years. It will be important for the company to sustain this trend to ensure continued financial success and stability in the future.