PC Connection Inc (CNXN)
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 | 117,487 | 113,114 | 121,635 | 96,522 | 73,196 |
| Revenue | US$ in thousands | 2,802,060 | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 |
| Pretax margin | 4.19% | 3.97% | 3.89% | 3.34% | 2.83% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $117,487K ÷ $2,802,060K
= 4.19%
PC Connection Inc's pretax margin has shown a relatively stable and positive trend over the five-year period from December 31, 2020, to December 31, 2024. The pretax margin increased from 2.83% in 2020 to 4.19% in 2024, indicating an improvement in the company's operating efficiency and profitability before accounting for income taxes.
This upward trajectory suggests that PC Connection Inc has been effectively managing its expenses and generating higher operating income relative to its total revenue over the years. A rising pretax margin typically signifies stronger operational performance and better cost control measures within the company.
The steady growth in pretax margin reflects positively on PC Connection Inc's ability to maximize profitability and create value for its shareholders. Overall, the consistent increase in pretax margin showcases the company's efforts to enhance its financial performance and operational effectiveness over the specified period.
Peer comparison
Dec 31, 2024