MGP Ingredients Inc (MGPI)
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 | 68,442 | 141,746 | 140,172 | 121,096 | 52,601 |
| Revenue | US$ in thousands | 703,625 | 836,523 | 782,358 | 626,720 | 395,521 |
| Pretax margin | 9.73% | 16.94% | 17.92% | 19.32% | 13.30% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $68,442K ÷ $703,625K
= 9.73%
MGP Ingredients Inc has shown varying pretax margins over the past five years, reflecting its operational efficiency and profitability before taxes. The trend indicates a positive performance overall, with a notable increase from 13.30% in 2020 to 19.32% in 2021. However, there was a slight decline in 2022 to 17.92%, followed by a further decrease to 16.94% in 2023. The most significant drop occurred in 2024, with the pretax margin falling to 9.73%.
This fluctuation in pretax margin suggests potential shifts in the company's cost structure, revenue generation, and management of operating expenses. It is crucial for MGP Ingredients Inc to closely monitor and analyze these changes to maintain and enhance its financial performance in the future. Additional factors, such as industry dynamics and economic conditions, may also have influenced the company's pretax margin during the years under review.