Chesapeake Energy Corp (CHK)
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 | 3,117,000 | 3,651,000 | 896,000 | -9,753,000 | -639,000 |
| Revenue | US$ in thousands | 8,721,000 | 11,743,000 | 5,549,000 | 5,240,000 | 8,532,000 |
| Pretax margin | 35.74% | 31.09% | 16.15% | -186.13% | -7.49% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,117,000K ÷ $8,721,000K
= 35.74%
The pretax margin of Chesapeake Energy Corp has shown varying trends over the past five years. In 2023, the pretax margin improved significantly to 35.74%, indicating that the company was able to generate higher earnings before taxes compared to its total revenue. This was a positive sign of improved operational efficiency and cost management.
In 2022, the pretax margin was 31.09%, which showed a slight decrease from the previous year but still indicated a healthy profitability level. The company managed to maintain a solid margin despite potential challenges in the operating environment.
However, in 2021, the pretax margin dropped to 16.15%, suggesting a decline in profitability compared to the previous year. This could be due to various factors such as increased costs, lower revenue, or operational inefficiencies that impacted the company's earnings before taxes.
The most significant anomaly was observed in 2020, where the pretax margin was -186.13%. A negative pretax margin indicates that the company incurred losses before taxes, which could be attributed to extraordinary expenses or significant impairments that negatively impacted the company's financial performance during that period.
Similarly, in 2019, the pretax margin was -7.49%, signaling another year of losses before taxes. This indicates ongoing challenges faced by the company in terms of controlling costs and maintaining profitability.
Overall, the trend in pretax margin for Chesapeake Energy Corp reflects periods of profitability as well as significant losses, highlighting the volatility and challenges present in the company's financial performance over the past five years.
Peer comparison
Dec 31, 2023