Diamondback Energy Inc (FANG)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	4,501,000	4,371,000	4,722,000	4,327,000	4,248,000	4,262,000	4,553,000	5,665,000	5,736,000	5,777,000	5,084,000	3,643,000	2,907,000	619,000	-1,657,000	-5,171,000	-5,776,000	-5,414,000	-3,515,000	35,000
Revenue (ttm)	US$ in thousands	11,051,000	9,572,000	9,267,000	8,680,000	8,378,000	8,191,000	8,288,000	9,160,000	9,643,000	9,635,000	9,107,000	8,018,000	6,793,000	5,538,000	4,348,000	3,092,000	2,806,000	3,141,000	3,395,000	3,990,000
Pretax margin		40.73%	45.66%	50.96%	49.85%	50.70%	52.03%	54.93%	61.84%	59.48%	59.96%	55.83%	45.44%	42.79%	11.18%	-38.11%	-167.24%	-205.84%	-172.37%	-103.53%	0.88%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,501,000K ÷ $11,051,000K
= 40.73%

Diamondback Energy Inc's pretax margin has shown significant fluctuations over the past few years. The company experienced negative pretax margins in 2020 and early 2021, indicating that its operating expenses exceeded its revenues before accounting for taxes.

However, there has been a notable turnaround since the second half of 2021, with pretax margins steadily increasing to positive levels. The company's pretax margin improved to 40.73% by the end of December 2024, indicating that Diamondback Energy Inc has been able to effectively control its costs and generate higher profitability from its operations.

Overall, Diamondback Energy Inc's pretax margin has shown a positive trend in recent periods, suggesting improved financial health and efficiency in managing its operating expenses.