Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,399,000 | 1,082,000 | 846,000 | 730,000 | 559,000 |
| Revenue | US$ in thousands | 10,364,000 | 9,432,000 | 8,179,000 | 7,657,000 | 7,339,800 |
| Pretax margin | 13.50% | 11.47% | 10.34% | 9.53% | 7.62% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,399,000K ÷ $10,364,000K
= 13.50%
Westinghouse Air Brake Technologies Corp has shown a positive trend in its pretax margin over the past five years. The pretax margin has steadily increased from 7.62% as of December 31, 2020, to 13.50% as of December 31, 2024. This indicates that the company has been able to effectively control its operating expenses and generate more earnings before taxes for each dollar of revenue generated.
The consistent improvement in the pretax margin suggests that Westinghouse Air Brake Technologies Corp has been successful in enhancing operational efficiency and profitability. This could be attributed to effective cost management strategies, increased revenue generation, or a combination of both. It demonstrates the company's ability to effectively convert its sales into profits before considering tax obligations.
The upward trajectory of the pretax margin is a positive indicator for investors and stakeholders, showcasing the company's ability to generate sustainable profits. It also reflects well on the management's ability to optimize resources and maintain a healthy bottom line. Overall, the improving trend in the pretax margin highlights Westinghouse Air Brake Technologies Corp's financial strength and competitive positioning in the industry.
Peer comparison
Dec 31, 2024