Graco Inc (GGG)

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 589,283 608,802 565,724 508,465 374,651
Revenue US$ in thousands 2,113,320 2,195,610 2,143,520 1,987,610 1,650,120
Pretax margin 27.88% 27.73% 26.39% 25.58% 22.70%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $589,283K ÷ $2,113,320K
= 27.88%

Graco Inc has shown a consistent improvement in its pretax margin over the past five years. Starting at 22.70% as of December 31, 2020, the pretax margin increased to 25.58% by December 31, 2021, indicating an upward trend in profitability. This positive momentum continued into the following years, reaching 26.39% by December 31, 2022, 27.73% by December 31, 2023, and finally peaking at 27.88% by December 31, 2024.

The rising pretax margin signifies that Graco Inc has been effectively managing its expenses relative to its revenue, resulting in improved profitability before considering taxes. This uptrend suggests the company's operating efficiency and cost control measures are yielding favorable results, potentially enhancing shareholder value and financial performance over the years.