Sempra Energy (SRE)
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 | 3,081,000 | 3,565,000 | 2,695,000 | 1,417,000 | 4,013,000 |
| Revenue | US$ in thousands | 13,185,000 | 16,720,000 | 14,439,000 | 12,857,000 | 11,370,000 |
| Pretax margin | 23.37% | 21.32% | 18.66% | 11.02% | 35.29% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,081,000K ÷ $13,185,000K
= 23.37%
The pretax margin of Sempra Energy, a measure of the company's profitability before taxes, has shown some fluctuations over the past five years.
As of December 31, 2020, the pretax margin stood at a robust 35.29%, indicating that Sempra Energy was generating considerable profits relative to its total revenue before accounting for taxes. However, there was a notable decrease by December 31, 2021, with the pretax margin dropping to 11.02%. This substantial decline could suggest challenges or changes affecting the company's ability to maintain its profit levels.
Subsequently, the pretax margin improved to 18.66% by December 31, 2022, and continued to rise in the following years, reaching 21.32% by December 31, 2023, and 23.37% by December 31, 2024. These increases indicate a positive trend in the company's profitability performance, showing an improvement in generating profits before taxes over time.
Overall, the fluctuations in Sempra Energy's pretax margin over the five-year period demonstrate varying levels of profitability and efficiency in cost management. The company's ability to maintain and increase its pretax margin in the latter years indicates progress in enhancing its financial performance.
Peer comparison
Dec 31, 2024