Kaiser Aluminum Corporation (KALU)
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 | 63,500 | 56,300 | -37,900 | -24,000 | 38,800 |
| Revenue | US$ in thousands | 3,024,000 | 3,087,000 | 3,427,900 | 2,622,000 | 1,172,700 |
| Pretax margin | 2.10% | 1.82% | -1.11% | -0.92% | 3.31% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $63,500K ÷ $3,024,000K
= 2.10%
The pretax margin of Kaiser Aluminum Corporation has fluctuated over the past five years. In December 2020, the company's pretax margin was 3.31%, indicating that for every dollar of revenue generated, the company earned $0.0331 in pretax profits.
However, by December 2021, the pretax margin had turned negative, standing at -0.92%. This suggests that the company's operating expenses and costs exceeded its revenue during this period, resulting in a loss before taxes.
The trend continued into December 2022 and December 2023, with the pretax margins being -1.11% and 1.82% respectively. Despite the improvement in 2023, the company still struggled to maintain a consistently positive pretax margin.
By December 2024, Kaiser Aluminum managed to increase its pretax margin to 2.10%, indicating a return to profitability and a more efficient management of costs relative to revenue. It is essential for the company to continue monitoring and improving its pretax margin to ensure sustainable financial health and profitability.
Peer comparison
Dec 31, 2024