nVent Electric PLC (NVT)
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 | 499,500 | 472,600 | 320,700 | -9,500 | 257,400 |
| Revenue | US$ in thousands | 3,195,600 | 2,877,800 | 2,414,500 | 1,962,200 | 2,159,300 |
| Pretax margin | 15.63% | 16.42% | 13.28% | -0.48% | 11.92% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $499,500K ÷ $3,195,600K
= 15.63%
nVent Electric plc's pretax margin has exhibited variability over the past five years. In 2023, the pretax margin decreased to 15.31% from 16.25% in 2022. This decline suggests that the company's profitability before taxes decreased slightly in 2023 compared to the previous year. However, the pretax margin in 2023 was still higher than in 2021, indicating an improvement in profitability over the two-year period.
Despite the fluctuation in recent years, nVent Electric plc has generally maintained positive pretax margins, except for a negative pretax margin of -0.48% in 2020. This negative result in 2020 indicates that the company experienced a loss before taxes during that period. It is important for the company to closely monitor its profitability trends to ensure sustained financial health and performance.
Peer comparison
Dec 31, 2023