Crescent Energy Co (CRGY)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-168,755	196,276	51,754	36,674	345,218	238,004	983,549	1,216,593	516,890	634,000	-121,454	-694,010	-432,533	-701,770	-952,348	-212,685
Revenue (ttm)	US$ in thousands	2,930,919	2,713,358	2,610,882	2,449,938	2,382,602	2,409,636	2,632,195	3,048,290	3,057,063	2,835,560	2,336,331	1,758,026	1,476,977	1,204,330	942,108	819,828
Pretax margin		-5.76%	7.23%	1.98%	1.50%	14.49%	9.88%	37.37%	39.91%	16.91%	22.36%	-5.20%	-39.48%	-29.29%	-58.27%	-101.09%	-25.94%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-168,755K ÷ $2,930,919K
= -5.76%

Crescent Energy Co's pretax margin fluctuated significantly over the period from March 31, 2021, to December 31, 2024. The company started with negative pretax margins, indicating that its pre-tax profitability was in the red. However, there was a gradual improvement in the pretax margin over time. From the negative values in 2021 and early 2022, the company managed to turn things around, achieving positive pretax margins by March 31, 2023.

The company's pretax margin continued to increase through the following quarters of 2023, reaching a peak of 39.91% by March 31, 2023. This significant improvement reflects a better control over costs, more efficient operations, or potentially higher revenue generation.

However, the pretax margin dropped slightly in the next quarter but remained relatively healthy. Unfortunately, by December 31, 2024, there was a notable decline, with the pretax margin turning negative again to -5.76%. This negative trend at the end of the period might indicate challenges or changes in the business environment that impacted Crescent Energy Co's profitability.

Overall, the trend in Crescent Energy Co's pretax margin shows both resilience and improvements in operational efficiency over the analyzed period, but the recent decline highlights the importance of continued monitoring and strategic decision-making to sustain profitability.