Sterling Construction Company Inc (STRL)
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 | 358,278 | 190,615 | 140,164 | 88,809 | 63,131 |
| Revenue | US$ in thousands | 2,115,760 | 1,972,230 | 1,769,440 | 1,414,370 | 1,226,740 |
| Pretax margin | 16.93% | 9.66% | 7.92% | 6.28% | 5.15% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $358,278K ÷ $2,115,760K
= 16.93%
The pretax margin of Sterling Construction Company Inc has demonstrated a consistent upward trend over the analyzed period from December 31, 2020, to December 31, 2024. Specifically, the pretax margin increased from 5.15% in 2020 to 6.28% in 2021, representing a rise of 1.13 percentage points. The growth continued more substantially in 2022, reaching 7.92%, which is an increase of 1.64 percentage points from the prior year. In 2023, the pretax margin advanced further to 9.66%, indicating a year-over-year improvement of approximately 1.74 percentage points. The most notable expansion occurred in 2024, where the pretax margin surged to 16.93%, nearly doubling from the previous year and reflecting an increase of approximately 7.27 percentage points.
This trend signifies a significant enhancement in the company's pre-tax profitability over the four-year period. The consistent year-over-year growth in pretax margin suggests improved operational efficiency, effective cost management, or a favorable shift in revenue composition that has contributed to higher profitability margins before income taxes. The substantial rise in 2024 particularly underscores a potential strategic shift or operational improvement that markedly boosted profit generation relative to total revenues. Overall, the data underscores a positive trajectory in Sterling Construction Company Inc’s ability to generate profits on its pre-tax earnings basis.
Peer comparison
Dec 31, 2024