Devon Energy Corporation (DVN)
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 | 3,661,000 | 4,588,000 | 7,753,000 | 2,878,000 | -3,227,000 |
| Revenue | US$ in thousands | 15,940,000 | 15,258,000 | 19,169,000 | 12,206,000 | 4,828,000 |
| Pretax margin | 22.97% | 30.07% | 40.45% | 23.58% | -66.84% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,661,000K ÷ $15,940,000K
= 22.97%
The pretax margin of Devon Energy Corporation has shown a fluctuating trend over the years. In December 31, 2020, the pretax margin was at a significant negative value of -66.84%, indicating that the company's operating expenses and other costs exceeded its operating income before taxes. However, there has been a notable improvement in the subsequent years.
By December 31, 2021, the pretax margin had turned positive at 23.58%, demonstrating that the company was able to generate a healthier level of operating profit compared to the prior year. This positive trend continued into December 31, 2022, with a further increase in the pretax margin to 40.45%. The company's ability to effectively control costs and increase operational efficiency contributed to this considerable improvement.
Although there was a slight decrease in the pretax margin by December 31, 2023 to 30.07%, the company still maintained a strong profitability level relative to the previous years. The most recent data as of December 31, 2024, shows a pretax margin of 22.97%, indicating a slight drop compared to the prior year but remaining at a respectable level.
Overall, Devon Energy Corporation has demonstrated a positive trend in pretax margin over the years, with improvements in operational efficiency and cost management. While there have been fluctuations, the company has shown the ability to adapt and maintain a reasonable level of profitability.
Peer comparison
Dec 31, 2024