Owens Corning Inc (OC)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 922,000 | 1,394,000 | 1,400,000 | 1,471,000 | 1,597,000 | 1,583,000 | 1,720,000 | 1,716,000 | 1,614,000 | 1,753,000 | 1,523,000 | 1,456,000 | 1,314,000 | 1,260,000 | 1,168,000 | 908,000 | -254,000 | -396,000 | -447,000 | -385,000 |
| Revenue (ttm) | US$ in thousands | 10,886,000 | 10,361,000 | 9,794,000 | 9,568,000 | 9,599,000 | 9,515,000 | 9,565,000 | 9,603,000 | 9,618,000 | 9,473,000 | 9,157,000 | 8,795,000 | 8,364,000 | 8,166,000 | 7,857,000 | 7,243,000 | 6,929,000 | 6,822,000 | 6,801,000 | 7,094,000 |
| Pretax margin | 8.47% | 13.45% | 14.29% | 15.37% | 16.64% | 16.64% | 17.98% | 17.87% | 16.78% | 18.51% | 16.63% | 16.55% | 15.71% | 15.43% | 14.87% | 12.54% | -3.67% | -5.80% | -6.57% | -5.43% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $922,000K ÷ $10,886,000K
= 8.47%
Owens Corning Inc's pretax margin has displayed fluctuating trends over the reported periods. The pretax margin was negative in the first three quarters of 2020, indicating that the company's expenses exceeded its revenue before accounting for taxes.
However, there was a significant turnaround in the following quarters as the pretax margin improved considerably, turning positive in March 2021 and increasing steadily through September 2022. This positive trend suggests that Owens Corning became more efficient in managing its costs and generating higher profits relative to its revenue during this period.
From December 2022 to March 2024, the pretax margin experienced a decline, falling from its peak in September 2022. This decrease could be attributed to various factors such as increased operating expenses, lower revenue growth, or changes in the company's pricing strategies.
The drop in the pretax margin in the last reported period, December 2024, to 8.47% marked a sharp decrease from the levels seen in prior quarters, indicating potential challenges faced by Owens Corning in maintaining profitability and efficiency.
In conclusion, while Owens Corning has shown improvements in its pretax margin over the years, the recent decline raises some concerns about the company's ability to sustain its profitability levels in the face of changing market conditions or internal complexities.