Diamondback Energy Inc (FANG)

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	4,055,000	4,099,000	4,382,000	5,479,000	5,560,000	5,573,000	4,941,000	3,528,000	2,813,000	591,000	-1,668,000	-5,147,000	-5,621,000	-5,291,000	-3,404,000	121,000	287,000	1,290,000	1,020,000	781,000
Revenue (ttm)	US$ in thousands	8,412,000	8,214,000	8,311,000	9,160,000	9,643,000	9,635,000	9,108,000	8,021,000	6,797,000	5,544,000	4,354,000	3,098,000	2,813,000	3,148,000	3,403,000	3,999,000	3,964,000	3,493,000	3,055,000	2,561,000
Pretax margin		48.20%	49.90%	52.73%	59.81%	57.66%	57.84%	54.25%	43.98%	41.39%	10.66%	-38.31%	-166.14%	-199.82%	-168.07%	-100.03%	3.03%	7.24%	36.93%	33.39%	30.50%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,055,000K ÷ $8,412,000K
= 48.20%

The pretax margin of Diamondback Energy Inc has shown fluctuations over the past eight quarters. The company's pretax margin ranged from a low of 45.42% in Q1 2022 to a high of 61.84% in Q1 2023. Overall, Diamondback Energy Inc has maintained relatively solid pretax margins, with the most recent quarter (Q4 2023) showing a pretax margin of 50.50%. This indicates that the company is effective in managing its pre-tax expenses relative to its revenue, but there is room for improvement in maintaining higher levels of profitability. It is important for Diamondback Energy Inc to continue monitoring and managing its costs effectively to sustain and potentially enhance its pretax margins in the future.