PPL Corporation (PPL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,116,000 | 924,000 | 957,000 | -977,000 | 1,783,000 |
| Revenue | US$ in thousands | 8,462,000 | 8,312,000 | 7,902,000 | 5,783,000 | 5,474,000 |
| Pretax margin | 13.19% | 11.12% | 12.11% | -16.89% | 32.57% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,116,000K ÷ $8,462,000K
= 13.19%
The pretax margin, which reflects the percentage of each dollar of revenue that translates into pre-tax profit, for PPL Corporation has displayed fluctuations over the years. In 2020, the pretax margin stood at a healthy 32.57%, indicating efficient cost management and profitability. However, by the end of 2021, the pretax margin decreased significantly to -16.89%, signifying potential challenges or losses in the company's operations.
Subsequently, there was an improvement in the pretax margin by the end of 2022, reaching 12.11%, suggesting a recovery in profitability. The trend continued in 2023, with a pretax margin of 11.12%, highlighting stability in the company's earnings generation. By the end of 2024, the pretax margin increased further to 13.19%, indicating the company's ability to control costs and enhance profitability.
Overall, while there have been fluctuations in the pretax margin for PPL Corporation, the company has managed to demonstrate resilience and improvement in profitability over the years, albeit with some challenges along the way.
Peer comparison
Dec 31, 2024