Essential Utilities Inc (WTRG)
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 | 431,781 | 450,908 | 422,000 | 264,971 | 211,526 |
| Revenue | US$ in thousands | 2,053,820 | 2,288,030 | 1,878,140 | 1,462,700 | 889,692 |
| Pretax margin | 21.02% | 19.71% | 22.47% | 18.12% | 23.78% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $431,781K ÷ $2,053,820K
= 21.02%
Essential Utilities Inc's pretax margin has shown some fluctuations over the past five years. In 2023, the pretax margin increased to 21.02% from 19.71% in 2022, indicating improved profitability before taxes. This suggests that the company was able to generate more earnings relative to its total revenue in 2023.
Comparing to 2021 and 2020, Essential Utilities Inc experienced a dip in pretax margin as it decreased from 22.47% in 2021 to 18.12% in 2020. This decline indicates a decrease in profitability efficiency in converting revenue to pre-tax profit during the given period.
The pretax margin of 23.78% in 2019 was the highest in the period, showing that the company had a strong performance in that year. It is worth noting that while the pretax margin fluctuated, Essential Utilities Inc was able to maintain profitability levels above 18% in all years under consideration. Further analysis would be needed to understand the factors driving these changes and to assess the overall financial health of the company.
Peer comparison
Dec 31, 2023