Atmos Energy Corporation (ATO)

Pretax margin

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,235,776	1,213,617	1,168,701	1,059,140	999,641	946,499	934,070	892,813	851,908	827,329	803,984	801,109	819,299	843,148	851,523	799,259	746,796	733,609	711,174	679,856
Revenue (ttm)	US$ in thousands	4,165,193	4,094,891	4,056,075	3,949,815	4,275,355	4,410,341	4,564,037	4,672,887	4,201,667	4,047,423	3,836,547	3,505,797	3,407,487	3,314,017	3,201,459	2,860,054	2,821,137	2,789,906	2,782,649	2,899,624
Pretax margin		29.67%	29.64%	28.81%	26.81%	23.38%	21.46%	20.47%	19.11%	20.28%	20.44%	20.96%	22.85%	24.04%	25.44%	26.60%	27.95%	26.47%	26.30%	25.56%	23.45%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,235,776K ÷ $4,165,193K
= 29.67%

The pretax margin of Atmos Energy Corporation has shown a generally increasing trend over the past few years, indicating improving profitability before tax expenses. From December 2019 to September 2024, the pretax margin has fluctuated but has generally trended upwards with some seasonality.

In the latest reported period of September 2024, the pretax margin stood at 29.67%, which was higher compared to the previous quarter at 29.64%. This suggests that the company has been able to maintain and slightly improve its profitability levels.

The highest pretax margin was recorded in September 2024, while the lowest was in December 2019. This indicates an overall improvement in profitability over the analyzed period.

Investors and stakeholders may view this trend positively, as it demonstrates the company's ability to effectively manage its costs and generate earnings before tax. It also indicates that the company may be operating efficiently and effectively utilizing its resources.

However, further analysis of the company's operational efficiency, cost management strategies, and revenue growth is recommended to gain a comprehensive understanding of the factors driving the pretax margin performance over time.