Masco Corporation (MAS)
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 | 1,186,000 | 1,132,000 | 620,000 | 1,493,000 | 1,165,000 |
| Revenue | US$ in thousands | 7,861,000 | 8,568,000 | 7,915,000 | 7,636,000 | 6,846,000 |
| Pretax margin | 15.09% | 13.21% | 7.83% | 19.55% | 17.02% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,186,000K ÷ $7,861,000K
= 15.09%
Masco Corp.'s pretax margin, a key financial metric indicating the company's profitability before accounting for taxes, has shown some fluctuation over the past five years. The pretax margin in 2023 increased to 15.54%, up from 13.74% in 2022, reflecting improved operational efficiency and cost management measures. This rise suggests that Masco Corp. was able to generate a higher percentage of pre-tax profit from its revenue in 2023 compared to the previous year.
Looking further back, the pretax margin in 2021 was 8.21%, significantly lower than in 2020 when it stood at 15.73%. This drop may indicate challenges faced by the company in controlling costs or generating revenue during that period. However, the upward trend in the following years, reaching 13.63% in 2019, suggests that Masco Corp. was able to recover and enhance its profitability over time.
In summary, Masco Corp.'s pretax margin has demonstrated variability but shows signs of improvement in recent years, indicating a strengthening financial performance and potential for sustained profitability. Further monitoring of this metric will be essential to assess the company's ability to maintain and enhance its profitability in the future.
Peer comparison
Dec 31, 2023