PG&E Corp (PCG)
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 | 699,000 | 476,000 | 748,000 | -942,000 | -11,042,000 |
| Revenue | US$ in thousands | 24,428,000 | 21,680,000 | 20,642,000 | 18,469,000 | 17,129,000 |
| Pretax margin | 2.86% | 2.20% | 3.62% | -5.10% | -64.46% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $699,000K ÷ $24,428,000K
= 2.86%
PG&E Corp.'s pretax margin has shown varying trends over the past five years. The company experienced a positive pretax margin of 2.86% in 2023, reflecting an improvement from the previous year. This suggests that PG&E Corp. was able to generate a higher level of profit before accounting for taxes relative to its total revenue in 2023.
In 2022, the pretax margin was 2.20%, indicating a slightly lower level of profitability compared to 2023. The company's performance was stronger in 2021 with a pretax margin of 3.62%, demonstrating improved profitability during that period.
However, PG&E Corp. faced challenges in 2020 as indicated by a negative pretax margin of -5.10%. This suggests that the company incurred losses before tax expenses in 2020, which could be a result of various factors such as increased costs or lower revenue.
The most significant decline in pretax margin occurred in 2019 when the figure was -64.46%, indicating substantial losses before tax. This could be attributed to extraordinary expenses, impairments, or other adverse events that impacted the company's financial performance significantly.
Overall, PG&E Corp.'s pretax margin has experienced fluctuations in recent years, with positive performance in 2023 showing signs of improvement compared to the challenging years of 2020 and 2019. It is essential for the company to continue monitoring and managing its profitability to ensure sustainable financial health and growth.
Peer comparison
Dec 31, 2023