International Paper (IP)
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 | 147,000 | 382,000 | 1,511,000 | 999,000 | 650,000 |
| Revenue | US$ in thousands | 18,619,000 | 18,916,000 | 21,161,000 | 19,363,000 | 20,580,000 |
| Pretax margin | 0.79% | 2.02% | 7.14% | 5.16% | 3.16% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $147,000K ÷ $18,619,000K
= 0.79%
The pretax margin of International Paper has shown fluctuations over the past five years. In December 2020, the pretax margin was relatively low at 3.16%. However, there was a notable improvement in December 2021, with the pretax margin increasing to 5.16%. The trend continued positively in December 2022, reaching a pretax margin of 7.14%, indicating improved profitability.
Unfortunately, there was a significant decline in profitability by December 2023, as the pretax margin dropped to 2.02%. This downward trend continued into December 2024, with the pretax margin falling even further to 0.79%, which may raise concerns about the company's ability to generate profits before taxes.
Overall, while International Paper experienced fluctuations in its pretax margin over the years, it is essential for the company to focus on sustaining or improving profitability to ensure long-term financial health and sustainability.
Peer comparison
Dec 31, 2024