International Paper (IP)
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 | 147,000 | 45,000 | 197,000 | 246,000 | 382,000 | 1,030,000 | 1,111,000 | 1,370,000 | 1,511,000 | 1,233,000 | 1,836,000 | 1,754,000 | 1,791,000 | 1,870,000 | 1,236,000 | 1,065,000 | 650,000 | 927,000 | 1,097,000 | 1,170,000 |
| Revenue (ttm) | US$ in thousands | 18,619,000 | 18,640,000 | 18,567,000 | 18,515,000 | 18,916,000 | 19,448,000 | 20,237,000 | 20,944,000 | 21,161,000 | 21,114,000 | 21,426,000 | 21,653,000 | 21,779,000 | 21,932,000 | 21,341,000 | 20,591,000 | 20,580,000 | 20,839,000 | 21,284,000 | 22,085,000 |
| Pretax margin | 0.79% | 0.24% | 1.06% | 1.33% | 2.02% | 5.30% | 5.49% | 6.54% | 7.14% | 5.84% | 8.57% | 8.10% | 8.22% | 8.53% | 5.79% | 5.17% | 3.16% | 4.45% | 5.15% | 5.30% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $147,000K ÷ $18,619,000K
= 0.79%
International Paper's pretax margin has shown fluctuations over the past few years, ranging from a low of 0.24% at the end of September 2024 to a high of 8.57% at the end of June 2022. The pretax margin indicates the efficiency of the company in generating profits before accounting for taxes on its revenue.
A declining trend is noticeable in the pretax margin from June 2022 to December 2024, going from 8.57% to 0.79%. The significant drop in pretax margin during this period may indicate challenges in maintaining profitability or increasing costs relative to revenue. However, there was a slight uptick in the pretax margin in March 2023 and June 2023, but the overall trend remained downward.
It is essential for International Paper to closely monitor and analyze the factors contributing to the fluctuations in the pretax margin to make informed decisions and take corrective actions to improve profitability and financial performance in the future.
Peer comparison
Dec 31, 2024