Dow Inc (DOW)
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 | 585,000 | 6,032,000 | 8,051,000 | 2,002,000 | -889,000 |
| Revenue | US$ in thousands | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 | 42,951,000 |
| Pretax margin | 1.31% | 10.60% | 14.65% | 5.19% | -2.07% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $585,000K ÷ $44,622,000K
= 1.31%
The pretax margin is a measure of a company's profitability, indicating the proportion of revenue that remains after deducting all expenses except for income taxes. Dow Inc's pretax margin exhibited significant fluctuations over the past five years. In 2023, the pretax margin decreased to 1.47%, signaling a decline in profitability compared to the previous year. This reduction may be indicative of increased expenses or a decrease in revenue relative to costs. The substantial decrease from 2022, when the pretax margin was 10.70%, suggests a noteworthy shift in the company's financial performance. However, it is important to analyze the specific factors contributing to this change, as fluctuations in the pretax margin could result from various operational and financial considerations. Furthermore, comparing the 2023 pretax margin to that of earlier years, such as the notably higher figures of 2019 (−2.90%), 2021 (14.82%), and 2020 (5.37%), provides valuable context for assessing the overall trend in Dow Inc's profitability.
Peer comparison
Dec 31, 2023