Topbuild Corp (BLD)
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 | 825,483 | 742,135 | 433,443 | 323,090 | 253,778 |
| Revenue | US$ in thousands | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 | 2,585,470 |
| Pretax margin | 16.12% | 14.99% | 12.59% | 12.03% | 9.82% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $825,483K ÷ $5,121,100K
= 16.12%
TopBuild Corp's pretax margin has shown a consistent upward trend over the past five years, reflecting the company's ability to effectively manage its pre-tax profitability. The pretax margin indicates the percentage of revenue that translates into pre-tax profit, before accounting for taxes and other expenses.
The pretax margin has increased steadily from 9.67% in 2019 to 15.89% in 2023, indicating improved operational efficiency and cost control measures implemented by the company. This upward trajectory suggests that TopBuild Corp has been successful in increasing its profitability relative to its revenue over the past five years.
Overall, the rising trend in the pretax margin for TopBuild Corp signifies positive financial health and operational performance, showcasing the company's ability to generate more profit from its revenue before tax expenses. This trend may indicate improved management strategies, cost-effectiveness, and potentially sustainable growth for the company in the long term.