Avery Dennison Corp (AVY)
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 | 694,700 | 999,300 | 988,700 | 733,600 | 246,900 |
| Revenue | US$ in thousands | 8,245,300 | 8,955,200 | 8,343,800 | 6,901,500 | 6,984,600 |
| Pretax margin | 8.43% | 11.16% | 11.85% | 10.63% | 3.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $694,700K ÷ $8,245,300K
= 8.43%
Avery Dennison Corp's pretax margin, which represents the company's profitability before taxes as a percentage of its total revenue, has shown fluctuations over the past five years.
In 2019, the pretax margin was 3.53%, indicating relatively lower profitability. However, the company's performance improved significantly in the following years, with pretax margins of 10.63% in 2020, 11.85% in 2021, and 11.16% in 2022.
The pretax margin for 2023 decreased to 8.43%, which may suggest a slight dip in profitability compared to the previous year. Despite this decline, Avery Dennison Corp has generally shown a healthy pretax margin range over the past five years, with a peak in 2021.
Further analysis of the company's operating expenses, revenue growth, and tax management strategies could provide insights into the factors influencing the fluctuations in pretax margin.
Peer comparison
Dec 31, 2023