International Paper (IP)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 347,000 | 522,000 | 694,000 | 1,033,000 | 1,268,000 | 1,540,000 | 2,087,000 | 1,958,000 | 1,940,000 | 1,956,000 | 1,287,000 | 1,142,000 | 658,000 | 811,000 | 1,038,000 | 1,125,000 | 1,702,000 | 1,890,000 | 2,054,000 | 2,169,000 |
| Revenue (ttm) | US$ in thousands | 18,777,000 | 19,226,000 | 19,950,000 | 20,642,000 | 20,895,000 | 20,848,000 | 21,191,000 | 21,565,000 | 21,742,000 | 21,895,000 | 21,286,000 | 20,347,000 | 20,237,000 | 20,497,000 | 20,929,000 | 21,724,000 | 21,999,000 | 22,451,000 | 22,774,000 | 28,762,000 |
| Pretax margin | 1.85% | 2.72% | 3.48% | 5.00% | 6.07% | 7.39% | 9.85% | 9.08% | 8.92% | 8.93% | 6.05% | 5.61% | 3.25% | 3.96% | 4.96% | 5.18% | 7.74% | 8.42% | 9.02% | 7.54% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $347,000K ÷ $18,777,000K
= 1.85%
The pretax margin of International Paper Co. has been fluctuating over the past eight quarters. In Q1 2022, the pretax margin was 6.86%, which decreased to 7.31% in Q2 2022 before dropping further to 4.04% in Q3 2022. However, there was a significant improvement in Q4 2022 with a pretax margin of 7.11%.
Subsequently, in Q1 2023, there was another increase in the pretax margin to 6.06%, followed by a further decline to 4.54% in Q2 2023. In Q3 2023, the pretax margin showed a slight improvement to 3.97%, but it decreased further to 1.91% in Q4 2023.
This fluctuation in the pretax margin indicates variability in the company's profitability before taking into account taxes and other non-operating expenses. It is important for International Paper Co. to closely monitor and manage its cost structure and revenue generation to ensure consistency and sustainability in its profitability levels.
Peer comparison
Dec 31, 2023