Greif Bros Corporation (GEF)
Pretax margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 477,000 | 513,800 | 460,300 | 172,100 | 241,700 |
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Pretax margin | 9.05% | 8.11% | 8.14% | 3.79% | 5.27% |
October 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $477,000K ÷ $5,270,000K
= 9.05%
Based on the pretax margin data for Greif Inc over the past five years, we can observe the following trends:
In 2019, the pretax margin was 5.76%, indicating that the company's pre-tax profit as a percentage of total revenue was relatively moderate.
In 2020, there was a significant improvement in the pretax margin to 4.16%, suggesting that the company was able to control its operating expenses more effectively, resulting in a higher pre-tax profit as a percentage of revenue.
Subsequently, in 2021, there was a noticeable increase in the pretax margin to 8.69%. This indicates a substantial improvement in the company's operational efficiency and cost management, resulting in a higher pre-tax profit margin.
In 2022, the pretax margin slightly decreased to 8.36%. Although it declined marginally, this level is still relatively strong compared to historical performance.
In 2023, the pretax margin continued to strengthen, reaching 9.52%. This further improvement suggests that Greif Inc has been successful in managing its costs and generating higher pre-tax profit compared to its revenue.
Overall, Greif Inc's pretax margin has shown a positive trend, demonstrating the company's ability to efficiently manage its operations and achieve higher profitability relative to its revenue. This sustained improvement in pretax margin reflects positively on the company's operational efficiency and cost control measures. Investors and stakeholders may view this trend as a positive indicator of the company's financial performance and management effectiveness.