Dow Inc (DOW)

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	585,000	1,778,000	2,366,000	3,820,000	6,032,000	7,294,000	8,539,000	8,815,000	8,051,000	7,774,000	5,567,000	2,951,000	2,020,000	-1,992,000	-1,587,000	-1,196,000	-876,000
Revenue (ttm)	US$ in thousands	44,622,000	45,860,000	49,245,000	53,489,000	56,902,000	59,407,000	60,129,000	58,350,000	54,968,000	51,310,000	46,185,000	40,654,000	38,542,000	38,040,000	39,092,000	41,752,000	42,951,000
Pretax margin		1.31%	3.88%	4.80%	7.14%	10.60%	12.28%	14.20%	15.11%	14.65%	15.15%	12.05%	7.26%	5.24%	-5.24%	-4.06%	-2.86%	-2.04%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $585,000K ÷ $44,622,000K
= 1.31%

The pretax margin of Dow Inc has displayed a downward trend over the past eight quarters. In December 2022, the pretax margin stood at 10.70%, but it has steadily decreased to 1.47% by December 2023. This decline indicates a decrease in the company's profitability before accounting for taxes and suggests potential inefficiencies in its cost structure or a decrease in revenues relative to expenses. It would be prudent to further investigate the specific factors contributing to this trend in order to determine appropriate strategic adjustments.