Topbuild Corp (BLD)
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 | 840,788 | 825,483 | 742,135 | 433,443 | 323,090 |
| Revenue | US$ in thousands | 5,331,020 | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 |
| Pretax margin | 15.77% | 16.12% | 14.99% | 12.59% | 12.03% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $840,788K ÷ $5,331,020K
= 15.77%
Topbuild Corp's pretax margin has shown consistent growth over the years, increasing from 12.03% in December 31, 2020, to 15.77% in December 31, 2024. This signifies that the company has been effectively managing its expenses relative to its revenue before accounting for taxes. The upward trend in pretax margin indicates improved operational efficiency and profitability, reflecting positively on the company's financial health. However, there was a slight dip in 2023 compared to the previous year, but the overall trend is positive. It is important for Topbuild Corp to continue monitoring and managing its expenses to sustain and potentially enhance its pretax margin in the future, ensuring long-term profitability and success.