Cactus Inc (WHD)
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 | 299,276 | 262,376 | 176,552 | 75,145 | 70,185 |
Revenue | US$ in thousands | 1,129,810 | 1,096,960 | 688,369 | 438,589 | 348,566 |
Pretax margin | 26.49% | 23.92% | 25.65% | 17.13% | 20.14% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $299,276K ÷ $1,129,810K
= 26.49%
The pretax margin of Cactus Inc, a measure of the company's efficiency in generating profits before taxes, has demonstrated variability over the years. In 2020, the pretax margin stood at 20.14%, indicating that for every dollar of sales, the company retained approximately 20.14 cents as profit before taxes.
However, in the subsequent years, there was a slight decline in the pretax margin. By December 31, 2021, the pretax margin decreased to 17.13%, signifying a decrease in profitability relative to sales. This decline may have been influenced by various factors affecting the company's operations or cost structure during that period.
The performance improved notably by the end of 2022, with the pretax margin increasing to 25.65%. This signifies a significant recovery in profitability, potentially resulting from strategic initiatives or improved cost management measures undertaken by the company.
By December 31, 2023, the pretax margin remained strong at 23.92%, indicating continued profitability and operational efficiency within the business.
The most recent data available by December 31, 2024, reveals a further improvement in profitability, with the pretax margin reaching 26.49%. This increase suggests that Cactus Inc has sustained its momentum in optimizing profitability ratios over time.
Overall, while experiencing fluctuations, Cactus Inc's pretax margin has shown an overall positive trend, underscoring the company's ability to effectively manage costs and generate profits before taxes.
Peer comparison
Dec 31, 2024