Xylem Inc (XYL)

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 1,087,000 635,000 440,000 511,000 285,000
Revenue US$ in thousands 8,562,000 7,364,000 5,522,000 5,195,000 4,876,000
Pretax margin 12.70% 8.62% 7.97% 9.84% 5.84%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,087,000K ÷ $8,562,000K
= 12.70%

Xylem Inc's pretax margin has shown an increasing trend over the past five years, starting at 5.84% in December 2020 and reaching 12.70% in December 2024. The pretax margin indicates the company's efficiency in generating profits before tax from its operations.

The gradual improvement in the pretax margin demonstrates that Xylem has been successful in controlling its operating expenses and increasing its operating income relative to its revenue. The significant increase from 2023 to 2024 suggests that the company has been able to enhance its profitability significantly, potentially through strategic cost management or revenue growth initiatives.

Overall, the rising pretax margin reflects positively on Xylem's financial performance and operational efficiency over the years covered in the data. This indicates that the company has been effectively managing its costs and increasing profitability, which is a favorable sign for investors and stakeholders.