Entegris Inc (ENTG)

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 321,119 172,256 247,080 479,076 354,287
Revenue US$ in thousands 3,241,210 3,523,930 3,282,030 2,298,890 1,859,310
Pretax margin 9.91% 4.89% 7.53% 20.84% 19.05%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $321,119K ÷ $3,241,210K
= 9.91%

The pretax margin for Entegris Inc has shown some fluctuations over the years.

In 2020, the pretax margin stood at 19.05%, indicating that the company was able to generate $0.19 in pretax profit for every $1 in sales. This margin improved to 20.84% in 2021, reflecting enhanced efficiency in controlling operating expenses and boosting profitability.

However, there was a significant decline in the pretax margin in 2022, dropping to 7.53%. This decrease suggests that operating expenses may have increased at a faster rate compared to sales, impacting profitability.

The trend continued in 2023 with the pretax margin further declining to 4.89%, indicating a continued challenge in managing costs effectively.

In 2024, there was a modest recovery with the pretax margin increasing to 9.91%. While an improvement from the previous year, the margin still remains below the levels seen in 2020 and 2021.

Overall, it is essential for Entegris Inc to focus on optimizing cost structures and operational efficiency to ensure sustainable profitability in the coming years.