Patterson-UTI Energy Inc (PTEN)
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 | 307,444 | 167,862 | -717,247 | -931,018 | -530,378 |
| Revenue | US$ in thousands | 4,096,500 | 2,619,410 | 1,316,530 | 1,090,150 | 2,385,360 |
| Pretax margin | 7.51% | 6.41% | -54.48% | -85.40% | -22.23% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $307,444K ÷ $4,096,500K
= 7.51%
Patterson-UTI Energy Inc's pretax margin has shown a fluctuating trend over the past five years. In 2023, the pretax margin improved to 7.41%, indicating that the company's profitability before taxes increased compared to the prior year. This suggests that the company managed to control its operating expenses more effectively and generate higher revenues relative to costs.
However, in 2022, the pretax margin was at 6.34%, showing a slight decline from the previous year. Despite this decrease, the company still maintained a positive pretax margin, reflecting a reasonable level of profitability before taxes.
In 2021 and 2020, the pretax margins were significantly negative at -53.04% and -82.81% respectively. These negative margins indicate that the company's operating expenses and other costs exceeded its revenues, resulting in substantial losses before taxes during these years.
In 2019, the pretax margin was negative but less severe at -21.47%, signaling continued challenges in profitability for the company.
Overall, Patterson-UTI Energy Inc's pretax margin has shown improvement in 2023 compared to previous years, suggesting enhanced operational efficiency and profitability. However, the company experienced significant losses in 2021 and 2020, emphasizing the need for effective cost management and revenue generation strategies to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023