Enpro Industries (NPO)
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 | 53,000 | 229,500 | 186,600 | 175,100 | 34,800 |
| Revenue | US$ in thousands | 1,013,100 | 1,067,900 | 1,259,100 | 1,052,000 | 1,171,800 |
| Pretax margin | 5.23% | 21.49% | 14.82% | 16.64% | 2.97% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $53,000K ÷ $1,013,100K
= 5.23%
The pretax margin measures a company's efficiency in generating profits before taxes relative to its total revenue. In the case of Enpro Inc, the pretax margin has fluctuated over the past five years.
In 2023, the pretax margin improved to 3.56%, showing a positive trend compared to the previous year's 2.57%. This indicates an enhancement in the company's ability to manage costs and expenses, resulting in a higher proportion of pre-tax profits relative to revenue.
The significant decrease in pretax margin in 2020, falling to -2.50%, suggests that Enpro Inc incurred losses before tax that year, indicating financial challenges and potentially inefficient cost management.
The substantial improvement in pretax margin in 2021 to 18.60% indicates a strong recovery and improved profitability for Enpro Inc, possibly due to strategic business decisions, cost-cutting measures, or increased revenues.
Overall, fluctuations in the pretax margin of Enpro Inc over the years reflect the company's varying success in managing its costs, generating profits, and navigating economic conditions.