Black Hills Corporation (BKH)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	309,400	287,800	283,592	243,913	260,526
Revenue	US$ in thousands	2,127,700	2,331,300	2,551,800	1,949,100	1,696,940
Pretax margin		14.54%	12.35%	11.11%	12.51%	15.35%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $309,400K ÷ $2,127,700K
= 14.54%

The pretax margin of Black Hills Corporation has seen fluctuations over the past five years. In 2020, the pretax margin was 15.35%, indicating that the company generated $0.1535 in pretax profit for every dollar of revenue. However, there was a decrease in profitability in 2021, with the pretax margin dropping to 12.51%. This decline suggests that the company's earnings before taxes decreased relative to its revenue.

In 2022, the pretax margin further decreased to 11.11%, indicating a continued decline in profitability. However, in 2023, there was a slight improvement in performance, with the pretax margin increasing to 12.35%. This uptick suggests that the company was able to better manage its expenses or generate higher revenues compared to the previous year.

Finally, in 2024, Black Hills Corporation experienced a notable increase in profitability, with the pretax margin rising to 14.54%. This improvement indicates that the company was able to generate higher pretax profits relative to its revenue during that period.

Overall, the trend in Black Hills Corporation's pretax margin shows both fluctuations and some level of volatility in profitability over the past five years. It is essential for the company to closely monitor and manage its expenses, revenues, and overall financial performance to ensure sustainable profitability in the future.