Pentair PLC (PNR)
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 | 618,700 | 548,300 | 623,800 | 433,600 | 401,500 |
| Revenue | US$ in thousands | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 | 2,957,200 |
| Pretax margin | 15.52% | 13.50% | 16.61% | 14.48% | 13.58% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $618,700K ÷ $3,987,100K
= 15.52%
Pentair plc's pretax margin has shown a fluctuating trend over the past five years. In 2023, the pretax margin improved to 15.08%, compared to 13.36% in 2022. This indicates that the company was able to generate more earnings before accounting for taxes for every dollar of sales in 2023. The pretax margin in 2023 was lower than the peak of 16.65% achieved in 2021 but higher than both 2020 and 2019.
Overall, the pretax margin reflects Pentair plc's ability to manage its operating expenses and generate profits before tax. The increasing trend in the pretax margin over the last two years suggests that the company may have implemented cost-saving measures or improved operational efficiency to enhance profitability. Further analysis of the company's financial statements and business operations would provide more insights into the factors driving these changes in the pretax margin.
Peer comparison
Dec 31, 2023