DXP Enterprises Inc (DXPE)
Pretax margin
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 86,930 | 83,693 | 80,781 | 74,328 | 65,955 | 56,338 | 43,872 | 34,269 | 19,927 | 3,864 | -47,505 | -54,171 | -47,965 | -31,095 | 30,429 | 45,178 | 47,253 | 59,837 | 55,072 | 52,862 |
| Revenue (ttm) | US$ in thousands | 1,624,653 | 1,630,258 | 1,604,174 | 1,550,194 | 1,451,697 | 1,344,867 | 1,248,616 | 1,166,773 | 1,093,114 | 1,037,874 | 970,085 | 937,202 | 993,218 | 1,056,018 | 1,161,769 | 1,242,731 | 1,252,318 | 1,267,818 | 1,248,873 | 1,225,530 |
| Pretax margin | 5.35% | 5.13% | 5.04% | 4.79% | 4.54% | 4.19% | 3.51% | 2.94% | 1.82% | 0.37% | -4.90% | -5.78% | -4.83% | -2.94% | 2.62% | 3.64% | 3.77% | 4.72% | 4.41% | 4.31% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $86,930K ÷ $1,624,653K
= 5.35%
The pretax margin of DXP Enterprises Inc has shown both fluctuations and a general upward trend over the historical period examined. In the most recent quarter, ending December 31, 2023, the pretax margin stood at 5.35%, which indicates that for every dollar of revenue generated, the company retained 5.35 cents as earnings before taxes. This figure represents an improvement compared to the previous quarters, signaling increased efficiency in managing expenses relative to revenue.
Looking further back, the pretax margin has experienced significant variability, with some quarters even reporting negative margins. This could be indicative of challenges faced by the company in controlling costs and optimizing its profitability during those periods. However, the positive trend observed in the most recent quarters suggests that DXP Enterprises Inc has made efforts to enhance its operational performance and financial health.
Overall, the upward trajectory of the pretax margin demonstrates the company's ability to strengthen its financial position and generate higher profit margins in recent periods. It also highlights improvements in cost management practices and operational efficiency, which are crucial factors for sustainable growth and value creation for shareholders.
Peer comparison
Dec 31, 2023