Topbuild Corp (BLD)
Pretax margin
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 825,485 | 819,061 | 802,394 | 772,776 | 742,133 | 661,542 | 581,901 | 510,616 | 433,443 | 421,532 | 387,080 | 337,099 | 323,086 | 295,573 | 273,247 | 267,915 | 253,778 | 241,640 | 227,063 | 196,570 |
| Revenue (ttm) | US$ in thousands | 5,120,910 | 5,099,790 | 5,078,940 | 5,041,270 | 4,951,870 | 4,757,590 | 4,311,639 | 3,878,974 | 3,443,847 | 3,112,824 | 2,961,908 | 2,771,414 | 2,692,863 | 2,633,725 | 2,617,128 | 2,629,892 | 2,595,201 | 2,572,399 | 2,546,712 | 2,502,046 |
| Pretax margin | 16.12% | 16.06% | 15.80% | 15.33% | 14.99% | 13.90% | 13.50% | 13.16% | 12.59% | 13.54% | 13.07% | 12.16% | 12.00% | 11.22% | 10.44% | 10.19% | 9.78% | 9.39% | 8.92% | 7.86% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $825,485K ÷ $5,120,910K
= 16.12%
TopBuild Corp has shown consistent improvement in its pretax margin over the past eight quarters. The pretax margin, which represents the percentage of each dollar of revenue that the company retains as profit before paying taxes, has been steadily increasing from 13.05% in Q1 2022 to 15.89% in Q4 2023. This upward trend indicates that TopBuild Corp is effectively managing its costs and expenses relative to its revenue.
The pretax margin has shown incremental improvements quarter over quarter, with fluctuations within a relatively narrow range. This stability suggests that TopBuild Corp has maintained a consistent level of operational efficiency and profitability over the period analyzed.
Overall, the upward trend in the pretax margin reflects positively on TopBuild Corp's ability to generate profits from its operations and indicates sound financial management. It demonstrates the company's potential for sustainable growth and value creation for its shareholders.