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