NewMarket Corporation (NEU)

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	488,962	347,734	247,551	331,287	331,590
Revenue	US$ in thousands	2,657,060	2,718,050	2,315,890	1,998,090	2,157,050
Pretax margin		18.40%	12.79%	10.69%	16.58%	15.37%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $488,962K ÷ $2,657,060K
= 18.40%

The pretax margin of NewMarket Corp. has shown fluctuations over the past five years. In 2023, the pretax margin increased substantially to 18.12%, reflecting the company's ability to generate higher profits before accounting for taxes compared to the previous year. This significant improvement may indicate improved operational efficiency or cost management within the organization.

In 2022, the pretax margin was 12.58%, lower than the current year but still higher than the margins reported in 2021 and 2019. This suggests that the company faced some challenges or incurred higher expenses in 2022, impacting its profitability compared to the adjacent years.

The pretax margin in 2021 was 10.51%, indicating a moderate level of profitability relative to the other years in consideration. This could be due to various factors such as changes in revenue, expenses, or other operating costs.

In 2020, the pretax margin was relatively higher at 16.47%, indicating increased profitability compared to 2021. This improvement could be attributed to factors like cost management initiatives, increased sales, or operational efficiencies during that period.

Lastly, in 2019, the pretax margin stood at 15.14%, showing a moderate level of profitability similar to 2020. The relatively stable margin in 2019 might indicate consistent performance in generating profits before taxes.

Overall, the trend in NewMarket Corp.'s pretax margin suggests variability in profitability over the past five years, with notable fluctuations observed. Each year's pretax margin reveals different levels of operational efficiency and cost management within the company, influencing its overall financial performance.