Innospec Inc (IOSP)

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 38,800 174,300 184,600 134,300 39,600
Revenue US$ in thousands 1,845,600 1,948,800 1,963,700 1,483,400 1,192,300
Pretax margin 2.10% 8.94% 9.40% 9.05% 3.32%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $38,800K ÷ $1,845,600K
= 2.10%

The pretax margin of Innospec Inc has fluctuated over the past five years. It showed an upward trend from 2020 to 2022, increasing from 3.32% to 9.40%. However, in 2023, there was a slight decrease to 8.94%, followed by a significant drop to 2.10% in 2024. The pretax margin measures the company's efficiency in generating profits before taxes relative to its total revenue. The decline in 2024 may indicate challenges in maintaining profitability, which warrants further investigation into the company's cost structure and revenue generation strategies. It is essential for Innospec Inc to closely monitor and address factors impacting its pretax margin to ensure sustainable financial performance.