International Paper (IP)
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 | 347,000 | 1,268,000 | 1,940,000 | 658,000 | 1,702,000 |
| Revenue | US$ in thousands | 18,685,000 | 42,080,000 | 39,054,000 | 40,947,000 | 44,282,000 |
| Pretax margin | 1.86% | 3.01% | 4.97% | 1.61% | 3.84% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $347,000K ÷ $18,685,000K
= 1.86%
The pretax margin of International Paper Co. has fluctuated over the past five years. In 2023, the pretax margin decreased to 1.91% from 7.11% in 2022, indicating a significant decline in profitability. This could be due to various factors such as changes in operating expenses, revenue structure, or economic conditions.
Comparing 2023 to 2021, the pretax margin decreased slightly from 6.78% to 1.91%. This suggests a potential weakening in the company's ability to generate profits before accounting for taxes. However, the pretax margin in 2023 was higher than in 2020 (3.53%), indicating some recovery in profitability since then.
In contrast, the pretax margin in 2019 was relatively high at 8.29%, suggesting that the company was more profitable in that year compared to the subsequent years. Overall, fluctuations in the pretax margin of International Paper Co. reflect changes in its financial performance and underscore the importance of closely monitoring and managing profitability metrics.
Peer comparison
Dec 31, 2023