RPC Inc (RES)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	256,243	317,257	384,682	359,457	289,632	196,425	111,293	50,200	16,448	-24,508	-62,692	-101,013	-309,431	-316,293	-378,668	-330,890	-113,101	-65,804	83,071	153,785
Revenue (ttm)	US$ in thousands	1,627,895	1,715,915	1,844,822	1,803,105	1,610,973	1,397,875	1,163,741	978,423	874,713	753,085	646,296	546,954	607,765	693,795	865,222	1,132,284	1,560,510	2,076,983	2,665,602	3,243,666
Pretax margin		15.74%	18.49%	20.85%	19.94%	17.98%	14.05%	9.56%	5.13%	1.88%	-3.25%	-9.70%	-18.47%	-50.91%	-45.59%	-43.77%	-29.22%	-7.25%	-3.17%	3.12%	4.74%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $256,243K ÷ $1,627,895K
= 15.74%

The pretax margin of RPC, Inc. has shown a generally increasing trend over the past eight quarters, indicating improved efficiency in generating profits before taxes relative to revenue. From Q1 2022 to Q2 2023, the pretax margin has increased from 5.19% to 20.97%, reflecting a significant improvement in profitability. However, there was a slight decrease in Q4 2023 compared to Q3 2023, from 18.61% to 15.84%.

The company's ability to control expenses and generate higher pre-tax profits from its operations has strengthened in recent quarters, as evidenced by the consistent growth in the pretax margin. This positive trend suggests that RPC, Inc. has become more effective in managing costs and improving operational efficiencies, leading to higher profitability levels before tax deductions. The management's efforts in optimizing the utilization of resources and enhancing operational performance seem to be paying off, resulting in a healthier financial performance for the company.