FMC Corporation (FMC)
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 | 202,200 | 881,700 | 832,100 | 703,600 | 588,900 |
| Revenue | US$ in thousands | 4,174,400 | 5,573,700 | 5,034,800 | 4,636,800 | 4,609,800 |
| Pretax margin | 4.84% | 15.82% | 16.53% | 15.17% | 12.77% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $202,200K ÷ $4,174,400K
= 4.84%
The pretax margin for FMC Corp. has shown some fluctuation over the past five years. The company's pretax margin decreased to 6.69% in 2023 from 16.96% in 2022, which suggests a significant decline in profitability. This decrease may be a cause for concern as it indicates that FMC Corp. may be experiencing challenges in managing its costs or generating sufficient revenues to cover its operating expenses and taxes before considering interest payments.
Comparing the pretax margin to previous years, it is evident that FMC Corp. had relatively higher pretax margins in 2021 (17.72%) and 2020 (15.72%), which indicates stronger profitability during those periods. The decrease in pretax margin from 2022 to 2023 may be reflective of changes in the company's operating efficiency, pricing strategies, or overall business performance.
Overall, analyzing FMC Corp.'s pretax margin over the past five years provides insights into the company's profitability trends and financial performance, highlighting the importance of closely monitoring and addressing factors that may impact profitability in the future.
Peer comparison
Dec 31, 2023