TXNM Energy, Inc. (TXNM)

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	280,240	90,529	211,310	244,429	207,952
Revenue	US$ in thousands	1,971,200	1,939,200	2,249,560	1,779,870	1,523,010
Pretax margin		14.22%	4.67%	9.39%	13.73%	13.65%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $280,240K ÷ $1,971,200K
= 14.22%

TXNM Energy, Inc.'s pretax margin has displayed some fluctuations over the years based on the provided data. The pretax margin was relatively stable between December 31, 2020, and December 31, 2021, with a slight increase from 13.65% to 13.73%. However, there was a notable decline in pretax margin by December 31, 2022, dropping to 9.39%. Subsequently, the margin experienced a significant decrease to 4.67% by December 31, 2023, indicating potential challenges or inefficiencies in managing pre-tax earnings in that period. Nevertheless, by December 31, 2024, the pretax margin showed a recovery and improvement, reaching 14.22%.

The fluctuations in TXNM Energy, Inc.'s pretax margin suggest varying levels of profitability before accounting for taxes. The management may need to investigate the reasons behind the sharp decline in 2023 and identify strategies to sustain or enhance profitability levels. It is also crucial for the company to monitor and work towards maintaining a healthy pretax margin to ensure sustainable financial performance in the long run.