Balchem Corporation (BCPC)
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 | 166,453 | 137,261 | 133,749 | 125,233 | 106,417 |
| Revenue | US$ in thousands | 953,684 | 922,439 | 942,358 | 799,023 | 703,644 |
| Pretax margin | 17.45% | 14.88% | 14.19% | 15.67% | 15.12% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $166,453K ÷ $953,684K
= 17.45%
Balchem Corporation's pretax margin has shown relatively stable performance over the years based on the provided data. The pretax margin measures the efficiency of the company in generating profits before taxes from its revenue.
In 2020, the pretax margin stood at 15.12%, indicating that for every dollar of revenue generated, Balchem Corporation was able to retain approximately 15.12 cents as profit before taxes.
There was a slight improvement in 2021, with the pretax margin increasing to 15.67%. This could suggest that the company was able to either increase its revenue, decrease its operating expenses, or a combination of both.
However, in 2022, the pretax margin dipped to 14.19%, indicating a decrease in profitability compared to the previous year. This decline could be attributed to various factors such as increased operating expenses, lower revenue growth, or other economic challenges faced by the company.
Subsequently, in 2023, the pretax margin rose to 14.88%, showing a slight recovery from the previous year's decline. This improvement may indicate that Balchem Corporation implemented cost-saving measures or experienced an increase in revenue during that period.
Lastly, in 2024, the pretax margin significantly increased to 17.45%, reaching the highest level in the provided data set. This notable improvement could signify improved operational efficiency, increased profitability, or successful strategic initiatives by the company.
Overall, the trend in Balchem Corporation's pretax margin reflects some fluctuations but generally demonstrates the company's ability to manage its costs, generate profits, and potentially create value for its shareholders.
Peer comparison
Dec 31, 2024