IPG Photonics Corporation (IPGP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 274,875 | 182,498 | 367,031 | 204,926 | 248,349 |
| Revenue | US$ in thousands | 1,287,440 | 1,429,550 | 1,460,860 | 1,200,720 | 1,314,580 |
| Pretax margin | 21.35% | 12.77% | 25.12% | 17.07% | 18.89% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $274,875K ÷ $1,287,440K
= 21.35%
The pretax margin of IPG Photonics Corp has exhibited variability over the past five years. In 2023, the pretax margin was 21.35%, showing a significant increase from the 2022 level of 12.83%. This improvement suggests enhanced efficiency in controlling operating expenses relative to revenue generation.
Comparing these figures to the pretax margin in 2021, which stood at 25.09%, we observe a relative decline in profitability in 2023 despite the positive trend. Nonetheless, it is worth noting that the pretax margin in 2023 surpassed the levels recorded in 2020 and 2019, indicating a favorable overall performance in recent years.
The fluctuation in pretax margins implies that IPG Photonics Corp may have experienced variations in operating expenses, income tax provisions, or revenue generation strategies during this period. Further analysis of the company's financial statements and operational activities would be beneficial to gain a more comprehensive understanding of the underlying factors driving these fluctuations in pretax margins.
Peer comparison
Dec 31, 2023