NewMarket Corporation (NEU)

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 584,107 488,962 347,734 247,551 331,287
Revenue US$ in thousands 2,786,560 2,698,420 2,764,800 2,356,110 2,010,930
Pretax margin 20.96% 18.12% 12.58% 10.51% 16.47%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $584,107K ÷ $2,786,560K
= 20.96%

NewMarket Corporation's pretax margin has shown fluctuations over the past five years. The trend indicates an improvement from 2021 to 2024, with the margin increasing from 10.51% to 20.96%. This indicates that the company has become more efficient in generating profits before accounting for taxes. The significant increase in the pretax margin from 2021 to 2024 suggests that the company has implemented effective cost management strategies or increased revenue generation. It is important to monitor this trend over time to assess the company's financial health and operational efficiency.