Chemours Co (CC)

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 127,000 -318,000 741,000 676,000 179,000
Revenue US$ in thousands 5,782,000 6,027,000 6,794,000 6,345,000 4,969,000
Pretax margin 2.20% -5.28% 10.91% 10.65% 3.60%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $127,000K ÷ $5,782,000K
= 2.20%

The pretax margin of Chemours Co, a key indicator of its profitability before taxes, has displayed varying trends over the past five years. In 2020, the pretax margin stood at 3.60%, indicating that for each dollar of revenue generated, the company retained $0.036 before paying taxes.

The following year, in 2021, the pretax margin improved significantly to 10.65%, reflecting enhanced operational efficiency and cost management. This elevated profitability continued into 2022, with a further increase to 10.91%, showcasing sustained positive performance.

However, a notable downturn was observed in 2023, as the pretax margin dropped to -5.28%, signaling potential challenges or inefficiencies impacting the company's profitability. It is important to investigate the reasons behind this negative trend and implement corrective measures to address the underlying issues.

In 2024, there was a partial recovery, with the pretax margin rebounding to 2.20%, although it remained below the levels seen in the previous years. This could indicate ongoing efforts to improve profitability but suggests the need for continued focus on enhancing operational effectiveness and financial performance.

Overall, the fluctuating pretax margin of Chemours Co highlights the importance of closely monitoring financial metrics and implementing strategic initiatives to maintain and enhance profitability in a competitive business environment.