Essential Utilities Inc (WTRG)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	573,478	522,235	513,358	527,114	431,781	432,106	429,176	428,562	450,908	442,546	421,379	415,688	422,000	410,883	418,378	408,769	264,971	242,615	269,788	247,429
Revenue (ttm)	US$ in thousands	2,086,113	1,961,149	1,937,149	1,939,443	2,053,824	2,279,788	2,303,151	2,315,207	2,288,032	2,118,336	2,045,578	1,993,854	1,878,144	1,816,455	1,803,242	1,790,678	1,462,698	1,214,742	1,109,721	944,145
Pretax margin		27.49%	26.63%	26.50%	27.18%	21.02%	18.95%	18.63%	18.51%	19.71%	20.89%	20.60%	20.85%	22.47%	22.62%	23.20%	22.83%	18.12%	19.97%	24.31%	26.21%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $573,478K ÷ $2,086,113K
= 27.49%

Essential Utilities Inc's pretax margin has shown fluctuations over the past years. The pretax margin decreased from 26.21% in March 2020 to 18.12% in December 2020, indicating a reduction in profitability before tax expenses. However, there was a gradual improvement in the pretax margin from March 2021 to June 2022, reaching a peak of 23.20%. Subsequently, the pretax margin declined to 18.51% in March 2023 but then experienced a recovery, surpassing 27% by the end of December 2024.

Overall, Essential Utilities Inc's pretax margin demonstrates variability but generally exhibits resilience as it recovers from downturns and reaches higher levels of profitability over time. Further analysis of the company's operating expenses and revenue trends may provide insights into the factors driving these fluctuations in pretax margin.