Diamondback Energy Inc (FANG)
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 | 4,501,000 | 4,248,000 | 5,736,000 | 2,907,000 | -5,776,000 |
| Revenue | US$ in thousands | 11,023,000 | 8,412,000 | 9,643,000 | 6,797,000 | 2,813,000 |
| Pretax margin | 40.83% | 50.50% | 59.48% | 42.77% | -205.33% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $4,501,000K ÷ $11,023,000K
= 40.83%
Based on the provided data, the pretax margin for Diamondback Energy Inc has shown significant fluctuations over the years. In December 31, 2020, the pretax margin was notably negative at -205.33%, indicating that the company's expenses exceeded its revenues before taxes. However, by December 31, 2021, there was a significant turnaround, with the pretax margin improving to a positive 42.77%.
The trend continued to be positive in the following years, reaching 59.48% by December 31, 2022. This indicates that Diamondback Energy Inc was able to effectively control its costs and improve its operational efficiency to generate higher profits before taxes.
Although there was a slight decrease in pretax margin to 50.50% by December 31, 2023, the company's profitability remained relatively strong. By December 31, 2024, the pretax margin stood at 40.83%, showing a slight decline compared to the previous year but still indicating a healthy level of profitability.
Overall, the trend in Diamondback Energy Inc's pretax margin shows a significant improvement from a negative position to consistently positive figures, reflecting the company's efforts to enhance its financial performance and profitability over the years.
Peer comparison
Dec 31, 2024