Viper Energy Ut (VNOM)

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	246,040	119,020	59,460	-49,838	4,699
Revenue	US$ in thousands	827,697	866,467	504,917	250,626	298,283
Pretax margin		29.73%	13.74%	11.78%	-19.89%	1.58%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $246,040K ÷ $827,697K
= 29.73%

The pretax margin of Viper Energy Ut has exhibited significant fluctuations over the past five years. In 2023, the pretax margin increased to 29.73%, representing a substantial improvement compared to the previous year's 13.74%. This marked improvement suggests that the company was able to effectively control its operating expenses and generate higher profitability before taxes.

The company's pretax margin in 2022 stood at 13.74%, indicating a moderate level of profitability achieved during that period. Prior to that, in 2021, the pretax margin was 11.78%, showing a slight increase from 2020 when the company reported a negative pretax margin of -19.89%. The negative pretax margin in 2020 suggests that the company incurred higher expenses or experienced lower revenues compared to the previous year.

In 2019, Viper Energy Ut had a pretax margin of 1.58%, indicating a relatively low level of profitability before taxes. Overall, the trend in the pretax margin of Viper Energy Ut shows fluctuations over the five-year period, with a notable positive performance in 2023 compared to the previous years. This indicates the company's varying ability to effectively manage its costs and drive profitability.