PC Connection Inc (CNXN)
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 | 113,114 | 121,635 | 96,522 | 73,196 | 112,679 |
| Revenue | US$ in thousands | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 | 2,819,820 |
| Pretax margin | 3.97% | 3.89% | 3.34% | 2.83% | 4.00% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $113,114K ÷ $2,850,070K
= 3.97%
PC Connection Inc's pretax margin has shown a varying trend over the past five years. The pretax margin increased from 3.34% in 2021 to 3.89% in 2022, indicating an improvement in the company's efficiency in generating profits before accounting for taxes. However, in 2023, the pretax margin increased marginally to 3.97%, showing a continued but slower growth in profitability. The pretax margin in 2020 was lower at 2.83%, suggesting a decrease in profitability compared to the more recent years.
Overall, PC Connection Inc's pretax margin has been relatively stable within a range of 2.83% to 4.00% over the past five years. This indicates that the company has been able to maintain profitability levels, with fluctuations possibly influenced by changes in operating expenses, revenue generation, or cost management strategies. Further analysis of the company's financial performance and operational efficiency would be necessary to understand the factors driving these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023