Newell Brands Inc (NWL)
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 | -543,000 | 157,000 | 760,000 | -1,001,000 | -931,000 |
| Revenue | US$ in thousands | 7,824,000 | 9,305,000 | 10,336,000 | 9,059,000 | 9,688,100 |
| Pretax margin | -6.94% | 1.69% | 7.35% | -11.05% | -9.61% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-543,000K ÷ $7,824,000K
= -6.94%
The pretax margin of Newell Brands Inc has shown varying trends over the past five years. In 2023, the pretax margin was negative at -6.68%, indicating that the company's expenses exceeded its operating income before taxes. This decline from the positive pretax margins in 2022 (1.66%) and 2021 (6.54%) suggests a deterioration in the company's profitability in 2023.
The pretax margin was notably low in 2020 at -10.72%, indicating significant financial challenges that year. However, it improved slightly in 2019 but remained negative at -8.77%. Overall, the fluctuating pretax margins reflect the company's inconsistent performance in generating profits relative to its revenue before accounting for taxes and other expenses.
It is crucial for Newell Brands Inc to closely monitor and manage its expenses, revenue generation, and overall financial performance to improve its pretax margin and strive for consistent profitability in the future.
Peer comparison
Dec 31, 2023