Vulcan Materials Company (VMC)
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 | 1,232,600 | 768,600 | 870,900 | 740,300 | 752,900 |
| Revenue | US$ in thousands | 7,781,900 | 7,315,200 | 5,552,200 | 4,856,800 | 4,929,100 |
| Pretax margin | 15.84% | 10.51% | 15.69% | 15.24% | 15.27% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,232,600K ÷ $7,781,900K
= 15.84%
The pretax margin of Vulcan Materials Co has exhibited variability over the past five years. The metric stood at 16.00% at the end of 2023, showing an improvement from the previous year's figure of 10.77%. However, it was slightly below the levels seen in 2021 (15.74%), 2020 (15.31%), and 2019 (15.37%).
The upward trend in the pretax margin in 2023 suggests that the company's ability to generate profits before accounting for taxes has strengthened compared to the prior year. This improvement may be attributed to various factors such as increased operational efficiency, effective cost management, or revenue growth outpacing cost increases.
Although the 2023 pretax margin is higher than that of 2022, it remains essential for Vulcan Materials Co to continue monitoring and managing its pre-tax profitability to ensure sustained financial health and profitability.
Peer comparison
Dec 31, 2023