Liberty Oilfield Services Inc (LBRT)

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	734,799	764,024	715,098	620,486	398,802	194,595	6,933	-133,012	-170,071	-161,109	-167,446	-190,026	-146,440	-114,870	-55,394	30,855	53,055	91,431	122,751	159,161
Revenue (ttm)	US$ in thousands	4,747,930	4,898,560	4,870,910	4,618,539	4,149,229	3,607,374	3,072,851	2,711,520	2,470,782	2,044,633	1,538,401	1,045,475	965,787	1,106,172	1,473,756	1,927,541	1,990,345	2,065,489	2,109,187	2,195,124
Pretax margin		15.48%	15.60%	14.68%	13.43%	9.61%	5.39%	0.23%	-4.91%	-6.88%	-7.88%	-10.88%	-18.18%	-15.16%	-10.38%	-3.76%	1.60%	2.67%	4.43%	5.82%	7.25%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $734,799K ÷ $4,747,930K
= 15.48%

The pretax margin of Liberty Energy Inc has shown a positive trend over the past eight quarters, indicating an improvement in the company's profitability before taxes.

The pretax margin has steadily increased from negative values in Q1 2022 to a peak of 15.61% in Q3 2023. This significant improvement suggests that the company has been effectively managing its expenses and generating higher revenues relative to its costs.

The average pretax margin for the latest four quarters is approximately 14.06%, reflecting a strong performance in terms of profitability. This indicates that Liberty Energy Inc is efficiently converting its revenue into pre-tax profits, which is a positive indicator for the company's overall financial health.

Overall, the increasing trend in pretax margin demonstrates Liberty Energy Inc's ability to control costs, optimize operations, and enhance profitability, which bodes well for its financial performance in the future.