Phillips 66 (PSX)
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 | 2,675,000 | 9,469,000 | 14,639,000 | 1,740,000 | -4,964,000 |
| Revenue | US$ in thousands | 143,153,000 | 147,399,000 | 169,990,000 | 111,476,000 | 64,129,000 |
| Pretax margin | 1.87% | 6.42% | 8.61% | 1.56% | -7.74% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,675,000K ÷ $143,153,000K
= 1.87%
The pretax margin is a key financial metric that indicates the proportion of a company's revenue that translates into pre-tax profit. Analyzing Phillips 66's pretax margin over the past five years, we observe fluctuations in its performance.
- In December 31, 2020, the pretax margin was negative at -7.74%, indicating that the company incurred pre-tax losses relative to its revenue.
- By December 31, 2021, the pretax margin improved significantly to 1.56%, showing that the company was able to generate a small pre-tax profit, albeit at a modest level.
- In December 31, 2022, the pretax margin increased substantially to 8.61%, reflecting a significant improvement in profitability compared to the previous year.
- However, by December 31, 2023, the pretax margin decreased to 6.42%, indicating a slight dip in profitability compared to the previous period.
- Finally, by December 31, 2024, the pretax margin was recorded at 1.87%, showing a modest profit margin, albeit lower than in 2022.
Overall, Phillips 66's pretax margin demonstrates variability over the years, with a mix of positive and negative performance. It is crucial for stakeholders to closely monitor this metric to assess the company's operational efficiency and profitability trends over time.
Peer comparison
Dec 31, 2024