Alcoa Corp (AA)
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 | -462,000 | 541,000 | 1,058,000 | 17,000 | -710,000 |
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Pretax margin | -4.40% | 4.39% | 8.88% | 0.19% | -6.90% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-462,000K ÷ $10,494,000K
= -4.40%
The pretax margin of Alcoa Corp has fluctuated over the past five years. In 2023, the company reported a negative pretax margin of -5.54%, demonstrating a decline from the previous year's 5.64%. This negative trend in pretax margin indicates that the company's pre-tax profitability decreased significantly in 2023 compared to 2022.
However, looking back to 2021, Alcoa Corp had a pretax margin of 9.87%, reflecting a strong profitability level. The company experienced a substantial improvement in its pretax margin in 2021 compared to both 2020 (1.86%) and 2019 (-4.20%).
Overall, despite the recent decline in 2023, Alcoa Corp has demonstrated variability in its pretax margin performance over the past five years, with both positive and negative fluctuations impacting its pre-tax profitability. Further analysis of the company's operational efficiency and cost management strategies may provide more insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023