Stepan Company (SCL)
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 | 60,439 | 48,391 | 188,703 | 172,537 | 171,067 |
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Pretax margin | 2.77% | 2.08% | 6.80% | 7.35% | 9.15% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $60,439K ÷ $2,180,270K
= 2.77%
The pretax margin of Stepan Company has exhibited a downward trend over the past five years, declining from 9.15% as of December 31, 2020, to 2.77% as of December 31, 2024. This trend indicates a decreasing level of profitability relative to the company's revenue before accounting for taxes and reflects potential challenges in managing costs, generating consistent income, or addressing operating inefficiencies. A declining pretax margin may raise concerns about the company's ability to maintain profitability levels and effectively manage its financial performance in the future. Continued monitoring and analysis of the company's operational and financial strategies may be necessary to address the factors contributing to this downward trend in pretax margin.
Peer comparison
Dec 31, 2024