RPC Inc (RES)
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 | 256,243 | 289,632 | 16,448 | -309,431 | -113,101 |
| Revenue | US$ in thousands | 1,627,900 | 1,610,970 | 874,713 | 607,747 | 1,225,850 |
| Pretax margin | 15.74% | 17.98% | 1.88% | -50.91% | -9.23% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $256,243K ÷ $1,627,900K
= 15.74%
The pretax margin of RPC, Inc. has exhibited significant fluctuations over the past five years. In 2023, the pretax margin stands at 15.84%, representing a decrease from the previous year's margin of 18.08%. Despite this decline, the 2023 pretax margin remains significantly higher when compared to the margins in 2021 (1.90%), 2020 (-51.72%), and 2019 (-9.25%).
The positive pretax margin in 2023 indicates that RPC, Inc. was able to generate profits before accounting for taxes as a percentage of its total revenue. It suggests that the company's cost management and operational efficiency improved compared to the preceding years characterized by negative or low pretax margins.
However, the fluctuating nature of the pretax margin over the five-year period highlights the company's susceptibility to changes in economic conditions, operational performance, and cost structures. It is important for RPC, Inc. to continue monitoring and optimizing its cost management strategies to sustain and enhance profitability in the future.
Peer comparison
Dec 31, 2023