H2O America (HTO)

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	102,937	90,943	82,324	68,847	69,895
Revenue	US$ in thousands	748,439	670,363	620,698	573,686	564,526
Pretax margin		13.75%	13.57%	13.26%	12.00%	12.38%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $102,937K ÷ $748,439K
= 13.75%

The pretax margin of H2O America demonstrates a generally positive trend over the analyzed period from December 31, 2020, through December 31, 2024. At the end of 2020, the company reported a pretax margin of 12.38%, indicating the proportion of earnings before taxes relative to its revenue. This figure slightly declined to 12.00% in 2021, suggesting a modest contraction in profitability before tax. However, subsequent years reveal an upward trajectory, with the pretax margin increasing to 13.26% in 2022, reflecting improved operational efficiency or increased pricing power. The margin continues to grow, reaching 13.57% in 2023, and further expanding to 13.75% in 2024. This steady increase signifies ongoing enhancements in the company's core profitability margins on a pretax basis, indicative of effective expense management, favorable revenue growth, or a combination of both. Overall, the data suggests a consistent and incremental improvement in H2O America’s pre-tax profitability over the five-year period.