Deere & Company (DE)
Pretax margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 13,037,000 | 9,138,000 | 7,621,000 | 3,833,000 | 4,105,000 |
| Revenue | US$ in thousands | 61,251,000 | 52,577,000 | 44,024,000 | 35,540,000 | 39,258,000 |
| Pretax margin | 21.28% | 17.38% | 17.31% | 10.79% | 10.46% |
October 29, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $13,037,000K ÷ $61,251,000K
= 21.28%
The pretax margin, also known as the pre-tax profit margin, represents the percentage of each dollar of revenue that a company retains as profit before taxes. It is a key indicator of a company's efficiency in managing its operating expenses and generating profits before taking into account tax obligations.
Analyzing the pretax margin of Deere & Co. over the past five years, we observe a consistent and notable improvement. In October 2023, the pretax margin stood at 21.27%, demonstrating a substantial increase from the previous year's 17.38%. This remarkable growth suggests that Deere & Co. has been more effective in generating profits relative to its revenue, signaling improved operational efficiency and cost management.
Comparing the recent pretax margin to that of previous years, it is evident that Deere & Co. has made significant strides in enhancing its profitability. Notably, the company achieved a substantial increase in pretax margin from 10.47% in November 2019 to 21.27% in October 2023, reflecting a noteworthy positive trend in the company's profit generation before taxes.
The consistent improvement in the pretax margin indicates that Deere & Co. has effectively controlled its operating expenses and increased its profitability over the years. This positive trend could be attributed to various factors such as efficient cost management, increased productivity, pricing strategies, and overall business performance.
In conclusion, the sustained increase in Deere & Co.'s pretax margin signifies the company's enhanced ability to generate profits from its operations before accounting for taxes. This trend bodes well for the company's financial health and indicates its improved efficiency and performance in recent years.
Peer comparison
Oct 29, 2023