Ingredion Incorporated (INGR)
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 | 831,000 | 658,000 | 240,000 | 500,000 | 571,000 |
| Revenue | US$ in thousands | 8,160,000 | 7,946,000 | 6,894,000 | 5,966,000 | 6,200,000 |
| Pretax margin | 10.18% | 8.28% | 3.48% | 8.38% | 9.21% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $831,000K ÷ $8,160,000K
= 10.18%
The pretax margin of Ingredion Inc has exhibited variability over the past five years. In 2023, the pretax margin improved to 10.28%, a notable increase from 8.41% in 2022. This indicates that for every dollar of revenue generated, the company retained 10.28 cents before accounting for taxes and other expenses.
The 2023 pretax margin performance represented a significant improvement compared to the previous year, which could be attributed to effective cost management, increased operational efficiency, or perhaps favorable market conditions.
In contrast, the pretax margin was lower in 2021 at 3.60%, reflecting a period of lower profitability relative to revenue. Subsequently, in 2020 and 2019, the pretax margin was 8.45% and 9.37% respectively, showing a relatively stable performance in those years.
Overall, the fluctuation in the pretax margin of Ingredion Inc over the period underscores the importance of closely monitoring operational efficiency, cost control measures, and revenue generation strategies to maintain and enhance profitability levels.
Peer comparison
Dec 31, 2023