Alcoa Corp (AA)
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 | 289,000 | -584,000 | 702,000 | 1,199,000 | 173,000 |
| Revenue | US$ in thousands | 11,895,000 | 10,551,000 | 12,451,000 | 12,152,000 | 9,286,000 |
| Pretax margin | 2.43% | -5.54% | 5.64% | 9.87% | 1.86% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $289,000K ÷ $11,895,000K
= 2.43%
The pretax margin reflects the profitability of Alcoa Corp before taking into account income taxes. Analyzing the trend over the years, we observe fluctuations in the pretax margin.
In December 2020, the pretax margin stood at 1.86%, indicating that the company generated a modest profit before taxes. By the end of 2021, the pretax margin substantially improved to 9.87%, signaling stronger profitability. However, in 2022, there was a decrease in the pretax margin to 5.64%, albeit still above the 2020 level.
The following year, in December 2023, the pretax margin turned negative at -5.54%, suggesting that Alcoa Corp incurred losses before considering taxes. This decline could be a cause for concern and may warrant further investigation into the company's operational performance and cost structure.
Nevertheless, in December 2024, the pretax margin recovered to 2.43%, indicating a return to profitability. Overall, the pretax margin fluctuated over the years, reflecting the dynamic nature of Alcoa Corp's financial performance and the potential challenges faced in maintaining consistent profitability.
Peer comparison
Dec 31, 2024