Howmet Aerospace Inc (HWM)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,383,000 | 1,261,000 | 1,149,000 | 1,058,000 | 975,000 | 853,000 | 715,000 | 655,000 | 606,000 | 536,000 | 455,000 | 382,000 | 324,000 | 317,000 | 282,000 | 86,000 | 264,000 | 497,000 | 718,000 | 609,000 |
| Revenue (ttm) | US$ in thousands | 7,430,000 | 7,270,000 | 7,093,000 | 6,861,000 | 6,640,000 | 6,422,000 | 6,197,000 | 5,942,000 | 5,663,000 | 5,435,000 | 5,285,000 | 5,087,000 | 4,972,000 | 4,925,000 | 4,776,000 | 4,834,000 | 6,834,000 | 8,997,000 | 11,422,000 | 13,860,000 |
| Pretax margin | 18.61% | 17.35% | 16.20% | 15.42% | 14.68% | 13.28% | 11.54% | 11.02% | 10.70% | 9.86% | 8.61% | 7.51% | 6.52% | 6.44% | 5.90% | 1.78% | 3.86% | 5.52% | 6.29% | 4.39% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,383,000K ÷ $7,430,000K
= 18.61%
The pretax margin of Howmet Aerospace Inc has shown a positive trend over the period from March 31, 2020, to December 31, 2024. The pretax margin started at 4.39% in March 2020 and gradually increased to 18.61% by December 2024, reflecting an improving profitability position for the company.
The pretax margin fluctuated within the range of 1.78% to 10.70% in the initial years but exhibited a more consistent growth trend from September 2022 onwards. This growth trajectory indicates that the company has been effectively managing its operating expenses and generating higher earnings before taxes relative to its revenue.
The most significant improvements in pretax margin were observed in the later years of the period, with double-digit margins achieved from March 2023 onwards. This indicates that Howmet Aerospace Inc has been able to enhance its operational efficiency and profitability, which is a positive indicator for investors and stakeholders.
Overall, the increasing trend in pretax margin reflects the company's ability to effectively control costs, optimize its operations, and drive profitability, which bodes well for its financial performance and long-term sustainability.
Peer comparison
Dec 31, 2024