Element Solutions Inc (ESI)
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 | 199,400 | 129,100 | 272,000 | 251,700 | 81,100 |
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Pretax margin | 8.12% | 5.53% | 10.67% | 10.49% | 4.38% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $199,400K ÷ $2,456,900K
= 8.12%
The pretax margin of Element Solutions Inc. demonstrates significant variation over the observed period from December 31, 2020, to December 31, 2024.
At the end of 2020, the pretax margin was approximately 4.38%, indicating relatively narrow profitability before taxes. This margin substantially increased by the end of 2021 to approximately 10.49%, more than doubling the prior year’s figure and reflecting improved operating efficiency or higher operating income relative to pre-tax earnings. The upward trend continued into 2022, with the pretax margin reaching 10.67%, suggestive of sustained profitability gains and possibly enhanced pricing strategies, cost management, or favorable market conditions.
However, the margin experienced a contraction in 2023, declining to approximately 5.53%. Such a decrease may indicate either increased operating costs, reduced revenue, or increased expenses impacting pre-tax income. Despite this decline, the margin remained higher than the 2020 figure, illustrating an overall improved pre-tax profitability compared to the beginning of the period.
In 2024, the pretax margin improved again to approximately 8.12%, signifying partial recovery from the 2023 dip. This rebound could reflect operational adjustments, cost control measures, or favorable market developments that positively influenced pre-tax earnings.
Overall, the pretax margin of Element Solutions Inc. depicts a pattern characterized by initial growth, a transient decline, followed by a partial recovery. The variability suggests influences from operational, market, or strategic factors impacting the company's profitability before tax across these years.
Peer comparison
Dec 31, 2024