Patterson-UTI Energy Inc (PTEN)
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 | -958,578 | 307,444 | 167,862 | -717,247 | -931,018 |
| Revenue | US$ in thousands | 5,377,910 | 4,146,460 | 2,619,410 | 1,316,530 | 1,090,150 |
| Pretax margin | -17.82% | 7.41% | 6.41% | -54.48% | -85.40% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-958,578K ÷ $5,377,910K
= -17.82%
Patterson-UTI Energy Inc's pre-tax margin has exhibited significant fluctuations over the years. In December 2020, the company's pre-tax margin was notably weak at -85.40%, indicating that expenses outweighed revenue before accounting for taxes. However, by December 2023 and 2024, the pre-tax margins improved significantly to 7.41% and -17.82%, respectively.
The positive pre-tax margins in 2023 and 2024 suggest that Patterson-UTI Energy Inc was able to generate more revenue relative to its expenses before tax deductions during those periods. This improvement indicates potentially better operational efficiency and cost management strategies implemented by the company.
It is worth noting that the company experienced a turnaround from significant losses in 2020 and 2021 to operating at a profit in the subsequent years. The positive trend in pre-tax margins from 2023 onwards may signal a positive trajectory for the company's financial performance. However, the negative pre-tax margin in 2024 suggests that challenges or fluctuations in expenses relative to revenue persist, and ongoing monitoring and analysis of financial performance will be crucial for stakeholders.
Peer comparison
Dec 31, 2024