Avient Corp (AVNT)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 86,700 | 548,800 | 532,300 | 607,200 | 683,800 | 249,700 | 316,100 | 297,900 | 295,900 | 286,400 | 235,900 | 177,400 | 119,900 | 558,000 | 601,200 | 620,000 | 622,300 | 155,700 | 159,600 | 171,500 |
| Revenue (ttm) | US$ in thousands | 3,025,600 | 3,616,800 | 3,679,400 | 4,170,600 | 4,630,600 | 4,533,100 | 4,947,900 | 4,877,400 | 4,743,500 | 4,556,500 | 4,250,500 | 3,627,700 | 3,186,800 | 2,848,400 | 2,643,400 | 2,938,100 | 3,120,000 | 3,295,400 | 3,473,000 | 3,484,000 |
| Pretax margin | 2.87% | 15.17% | 14.47% | 14.56% | 14.77% | 5.51% | 6.39% | 6.11% | 6.24% | 6.29% | 5.55% | 4.89% | 3.76% | 19.59% | 22.74% | 21.10% | 19.95% | 4.72% | 4.60% | 4.92% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $86,700K ÷ $3,025,600K
= 2.87%
To analyze Avient Corp's pretax margin, we can observe fluctuations in the trend over the past eight quarters. The pretax margin represents the company's profitability before taking into account taxes and is a crucial indicator of operational efficiency.
In Q4 2023, Avient Corp's pretax margin improved to 2.78%, indicating a positive trend compared to the previous quarter's -2.76%. However, it is important to note that the pretax margin in Q4 2023 is still lower than the levels observed in the same quarter of the previous year, which was 1.88%.
Avient Corp experienced a significant decline in pretax margin in Q3 2023, where it recorded a negative margin of -2.76%. This may indicate challenges or difficulties faced by the company during that period that affected its profitability.
Looking at the broader trend, Avient Corp's pretax margin has shown fluctuations over the past eight quarters, with the highest levels observed in Q2 and Q1 of 2022 at 6.74% and 6.32%, respectively. However, the margins have since declined, with recent quarters showing lower profitability levels.
Overall, the analysis suggests that Avient Corp's pretax margin has been volatile, with fluctuations impacting its profitability over the past two years. It is essential for the company to closely monitor and address the factors influencing its pretax margin to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023