Verizon Communications Inc (VZ)
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 | 16,506,000 | 27,779,000 | 28,867,000 | 23,420,000 | 22,210,000 |
| Revenue | US$ in thousands | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 | 131,868,000 |
| Pretax margin | 12.32% | 20.30% | 21.60% | 18.26% | 16.84% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $16,506,000K ÷ $133,974,000K
= 12.32%
Verizon Communications Inc's pretax margin has experienced fluctuations over the past five years. The pretax margin decreased from 17.24% in 2019 to 18.68% in 2020, before declining further to 22.02% in 2021. However, there was a significant drop in pretax margin to 20.66% in 2022, followed by a further decrease to 12.68% in 2023.
This trend indicates a decline in the company's ability to generate profits before accounting for taxes in recent years. The decreasing pretax margin may suggest challenges in controlling costs, managing operating expenses, or generating sufficient revenue to offset expenses. Investors and stakeholders may want to further investigate the reasons behind the declining pretax margin to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023