NewMarket Corporation (NEU)

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	488,962	492,630	438,477	399,375	347,734	269,414	250,238	231,688	247,551	293,904	350,369	310,579	331,287	321,597	291,437	360,860	331,590	336,052	316,908	289,782
Revenue (ttm)	US$ in thousands	2,657,060	2,693,036	2,722,787	2,764,467	2,718,052	2,610,742	2,535,924	2,401,221	2,315,892	2,282,767	2,176,308	1,998,315	1,990,356	1,997,020	2,039,447	2,191,264	2,167,555	2,171,422	2,177,951	2,215,662
Pretax margin		18.40%	18.29%	16.10%	14.45%	12.79%	10.32%	9.87%	9.65%	10.69%	12.87%	16.10%	15.54%	16.64%	16.10%	14.29%	16.47%	15.30%	15.48%	14.55%	13.08%

December 31, 2023 calculation

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

The pretax margin of NewMarket Corp. has shown a consistent and positive trend over the past eight quarters, reflecting an improvement in the company's ability to generate profits before accounting for taxes.

The pretax margin has steadily increased from 9.45% in Q1 2022 to 18.12% in Q4 2023, indicating a strong upward trajectory in profitability. This suggests that the company has been able to effectively manage its expenses and operating costs while increasing revenue, resulting in higher earnings before taxes.

The continuous improvement in pretax margin highlights NewMarket Corp.'s ability to enhance operational efficiency and optimize its financial performance. This positive trend could be attributed to strategic management decisions, effective cost control measures, and potentially increasing revenue streams.

Overall, the consistent growth in pretax margin signifies the company's strengthening financial health and profitability, demonstrating its capacity to sustain and potentially enhance its performance in the future.