NiSource Inc (NI)
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 | 853,800 | 968,700 | 702,700 | -34,700 | 506,600 |
| Revenue | US$ in thousands | 4,817,400 | 5,341,000 | 4,383,000 | 3,804,400 | 6,743,700 |
| Pretax margin | 17.72% | 18.14% | 16.03% | -0.91% | 7.51% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $853,800K ÷ $4,817,400K
= 17.72%
The pretax margin of NiSource Inc has shown fluctuation over the past five years. In 2023, the pretax margin stood at 14.78%, slightly lower than the previous year's level of 16.35%. This indicates that for every dollar of revenue generated, the company's pre-tax profit was 14.78 cents in 2023.
Compared to 2021 and 2019 when the pretax margins were 14.42% and 9.73% respectively, the company has generally shown improvement in profitability. However, the significant drop in 2020 where the pretax margin was negative at -0.67% raises concerns about the company's ability to generate profits before taxes in that particular year.
Overall, NiSource Inc's pretax margin has exhibited variability, and further analysis is necessary to understand the underlying factors driving these fluctuations in profitability.
Peer comparison
Dec 31, 2023