Dril-Quip Inc (DRQ)
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 | 13,468 | 6,770 | -125,050 | -62,049 | 10,429 |
| Revenue | US$ in thousands | 424,060 | 361,924 | 322,945 | 364,973 | 414,806 |
| Pretax margin | 3.18% | 1.87% | -38.72% | -17.00% | 2.51% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $13,468K ÷ $424,060K
= 3.18%
Dril-Quip, Inc.'s pretax margin has been varied over the past five years. In 2023, the pretax margin stood at 3.18%, showing an improvement from the previous year's 1.87%. This indicates that the company's ability to generate earnings before taxes relative to its revenue has strengthened.
However, when comparing the current pretax margin to earlier years, notably 2019 and 2020, Dril-Quip, Inc. experienced significant fluctuations. The pretax margin plummeted in 2021 to -38.72% and was negative, indicating that the company incurred losses before taxes. The substantial negative margin could be a cause for concern regarding the company's profitability and operational efficiency in 2021.
The positive trend in recent years suggests that Dril-Quip, Inc. may have implemented strategies to enhance cost management, operational effectiveness, or revenue generation. It is essential for stakeholders to monitor the company's pretax margin closely to assess its financial health and overall performance in line with its strategic objectives.
Peer comparison
Dec 31, 2023