Mercer International Inc (MERC)
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 | -269,823 | -155,059 | -35,047 | 196,236 | 345,303 | 434,899 | 438,467 | 365,069 | 260,567 | 131,007 | 35,169 | -4,460 | -11,139 | -88,403 | -92,722 | -64,501 | 9,587 | 163,649 | 213,556 | 218,080 |
| Revenue (ttm) | US$ in thousands | 1,902,412 | 2,022,817 | 2,095,191 | 2,150,228 | 2,225,984 | 2,170,471 | 2,102,894 | 1,921,045 | 1,713,879 | 1,611,455 | 1,462,773 | 1,394,244 | 1,358,964 | 1,291,941 | 1,356,264 | 1,439,936 | 1,568,676 | 1,576,750 | 1,533,582 | 1,482,235 |
| Pretax margin | -14.18% | -7.67% | -1.67% | 9.13% | 15.51% | 20.04% | 20.85% | 19.00% | 15.20% | 8.13% | 2.40% | -0.32% | -0.82% | -6.84% | -6.84% | -4.48% | 0.61% | 10.38% | 13.93% | 14.71% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-269,823K ÷ $1,902,412K
= -14.18%
The pretax margin of Mercer International Inc. has been fluctuating over the past eight quarters. In Q4 2023, the pretax margin was -13.53%, indicating a negative profitability before taxes. This marked a significant decline from the previous quarter's pretax margin of -7.36%. The company's profitability rebounded in Q1 2023 with a pretax margin of 8.88%, but this was lower than the pretax margins seen in the same quarter of the previous year.
The trend over the last two years indicates that the company experienced a gradual decrease in pretax margin, with peaks seen in Q2 and Q3 of 2022 at 20.36% and 19.62%, respectively. However, the pretax margin has been on a declining trend since then. These fluctuations in pretax margin suggest that Mercer International Inc. may be facing challenges in maintaining consistent profitability levels, potentially impacted by factors such as operational efficiency, cost management, and revenue generation strategies.