Corteva Inc (CTVA)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 887,000 | 1,015,000 | 1,060,000 | 1,436,000 | 1,357,000 | 1,823,000 | 2,230,000 | 2,190,000 | 2,283,000 | 1,906,000 | 1,395,000 | 979,000 | 600,000 | 562,000 | 473,000 | -703,000 | -1,005,000 |
| Revenue (ttm) | US$ in thousands | 17,226,000 | 17,344,000 | 17,531,000 | 17,738,000 | 17,455,000 | 17,109,000 | 16,703,000 | 16,078,000 | 15,655,000 | 15,383,000 | 14,875,000 | 14,439,000 | 14,217,000 | 13,993,000 | 14,041,000 | 14,406,000 | 13,846,000 |
| Pretax margin | 5.15% | 5.85% | 6.05% | 8.10% | 7.77% | 10.66% | 13.35% | 13.62% | 14.58% | 12.39% | 9.38% | 6.78% | 4.22% | 4.02% | 3.37% | -4.88% | -7.26% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $887,000K ÷ $17,226,000K
= 5.15%
The pretax margin of Corteva Inc has shown a declining trend over the past eight quarters. From Q1 2022 to Q4 2023, the pretax margin has decreased from 14.01% to 6.35%. This indicates that the company's profitability before taxes has been gradually eroding.
The steep decline in pretax margin from Q2 2022 (13.64%) to Q1 2023 (8.48%) suggests a significant decrease in profitability during that period. However, there was a slight improvement in Q3 2023 (6.99%) before decreasing again in Q4 2023.
The declining pretax margin could be a cause for concern as it may indicate inefficiencies in cost management, decreasing revenue growth, or other operational challenges that are impacting the company's overall profitability. It would be important for Corteva Inc to analyze the factors contributing to this trend and implement strategies to improve profitability in the future.
Peer comparison
Dec 31, 2023