Fortune Brands Innovations Inc. (FBIN)
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 | 605,500 | 516,900 | 813,900 | 939,100 | 663,900 |
| Revenue | US$ in thousands | 4,609,000 | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 |
| Pretax margin | 13.14% | 11.17% | 17.23% | 19.56% | 18.33% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $605,500K ÷ $4,609,000K
= 13.14%
Fortune Brands Innovations Inc.'s pretax margin has shown fluctuating trends over the past five years. In 2020, the pretax margin stood at 18.33%, indicating that the company retained $0.1833 in pretax profit for every dollar of revenue generated before accounting for taxes. The pretax margin improved to 19.56% by the end of 2021, suggesting enhanced efficiency in managing expenses relative to revenue.
However, there was a slight decline in the pretax margin to 17.23% by the end of 2022, possibly indicating increased operating costs or a decrease in revenue growth. The trend worsened in 2023, with the pretax margin falling to 11.17%, showcasing a significant decrease in profitability compared to the previous years.
Although there was a slight recovery in 2024, with the pretax margin increasing to 13.14%, it remained below the levels observed in 2021 and 2022. Overall, the fluctuating pretax margin trend suggests that Fortune Brands Innovations Inc. may need to focus on improving cost management strategies and revenue generation to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2024