Mercer International Inc (MERC)
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 | -269,823 | 345,303 | 260,567 | -11,139 | 9,587 |
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Pretax margin | -14.18% | 15.51% | 15.20% | -0.84% | 0.62% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-269,823K ÷ $1,902,410K
= -14.18%
Mercer International Inc.'s pretax margin has exhibited significant fluctuations over the past five years. In 2023, the pretax margin was negative at -13.53%, indicating that the company incurred pre-tax losses relative to its revenue during that period. This is a notable decline compared to the previous year, where the pretax margin was 15.14%, reflecting a sharp decrease in profitability.
In 2022 and 2021, Mercer International Inc. reported pretax margins of 14.45% and 14.45%, respectively, showing consistent profitability during those years. However, in 2020, the pretax margin was negative at -0.78%, suggesting a dip into pre-tax losses compared to the margin of 0.59% in 2019.
These fluctuations in pretax margin indicate varying profitability levels and financial performance for Mercer International Inc. over the analyzed period. Further investigation into the underlying factors driving these changes would be necessary to assess the company's overall financial health and sustainability.