Packaging Corp of America (PKG)
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 | 1,064,400 | 1,014,100 | 1,364,800 | 1,108,700 | 632,700 |
| Revenue | US$ in thousands | 8,383,300 | 7,802,400 | 8,478,000 | 7,730,300 | 6,658,200 |
| Pretax margin | 12.70% | 13.00% | 16.10% | 14.34% | 9.50% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,064,400K ÷ $8,383,300K
= 12.70%
Packaging Corp of America has shown a generally positive trend in its pretax margin over the years based on the provided data. The pretax margin increased from 9.50% as of December 31, 2020, to 14.34% by December 31, 2021, signaling a significant improvement in the company's efficiency in generating profits before tax expenses.
Further, the pretax margin continued to rise to 16.10% by December 31, 2022, suggesting sustained growth and potentially improved cost management within the company. However, there was a slight dip in the pretax margin to 13.00% by the end of 2023, possibly indicating challenges or fluctuations in the company's operations or industry dynamics.
By December 31, 2024, the pretax margin settled at 12.70%, showing a decrease compared to the previous year. This decline may raise some concerns regarding the company's ability to maintain profitability levels amidst changing market conditions or operational factors.
Overall, fluctuations in Packaging Corp of America's pretax margin indicate a mix of positive and challenging trends, necessitating further analysis to understand the underlying causes and implications for the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024