Nextera Energy Inc (NEE)
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 | 8,316,000 | 4,733,000 | 3,921,000 | 2,963,000 | 4,217,000 |
| Revenue | US$ in thousands | 24,708,000 | 23,278,000 | 19,042,000 | 16,976,000 | 17,604,000 |
| Pretax margin | 33.66% | 20.33% | 20.59% | 17.45% | 23.95% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $8,316,000K ÷ $24,708,000K
= 33.66%
NextEra Energy Inc's pretax margin has shown fluctuations over the past five years. The pretax margin measures the efficiency of the company in generating profits before accounting for taxes as a percentage of its total revenue.
In 2023, the pretax margin improved significantly to 25.92%, which indicates that the company was able to increase its profitability on its operating activities compared to the previous year. This improvement suggests effective cost management or revenue growth strategies implemented by the company.
The pretax margin in 2022 was 18.29%, a decrease from the prior year. This reduction may indicate increased expenses or lower revenue generation during that period. It is important for the company to assess the factors contributing to this decline to address any underlying issues affecting profitability.
In 2021, the pretax margin was 18.60%, slightly below the 2022 level. This marginal decrease could suggest relatively stable performance in maintaining profitability compared to the previous year.
In 2020, the pretax margin stood at 13.41%, notably lower than the recent years. This decline may highlight challenges faced by the company, such as increased costs or economic uncertainties impacting its profitability.
Lastly, in 2019, the pretax margin was 19.98%, showing a relatively strong performance compared to 2020 but lower than the peak in 2023. This indicates that the company has previously achieved higher levels of profitability.
Overall, analyzing the trend of NextEra Energy Inc's pretax margin over the past five years suggests some volatility in profitability levels. It is essential for the company to maintain a favorable pretax margin to ensure sustainable financial performance. Conducting further analysis into the underlying factors driving these fluctuations would be crucial for strategic decision-making.
Peer comparison
Dec 31, 2023