Peabody Energy Corp (BTU)

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 1,068,400 1,258,300 382,900 -1,862,300 -165,300
Revenue US$ in thousands 4,946,700 4,981,900 3,318,300 2,881,100 4,623,400
Pretax margin 21.60% 25.26% 11.54% -64.64% -3.58%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,068,400K ÷ $4,946,700K
= 21.60%

Peabody Energy Corp's pretax margin has shown a mixed performance over the past five years. In 2023, the pretax margin decreased to 21.60%, down from 25.26% in 2022, indicating a slight decline in profitability before considering taxes. However, the company's margin remains positive, reflecting a significant improvement from the negative margins reported in 2020 and 2019.

The substantial negative pretax margins in 2020 (-64.64%) and 2019 (-3.58%) suggest that the company faced challenges and incurred losses during those years. The sharp recovery in profitability seen in 2021 (11.54%) signifies a turnaround for Peabody Energy Corp, as it successfully managed to enhance its profitability.

Overall, while the recent decrease in pretax margin may raise some concerns, the positive trend over the past few years indicates an improving financial performance for the company. Further analysis of the factors driving these margin fluctuations would be necessary to assess the sustainability and effectiveness of Peabody Energy Corp's profitability strategies.


Peer comparison

Dec 31, 2023

Company name
Symbol
Pretax margin
Peabody Energy Corp
BTU
21.60%
Alpha Metallurgical Resources Inc
AMR
24.35%
Arch Resources Inc
ARCH
17.62%