Stepan Company (SCL)
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 | 48,391 | 188,703 | 172,446 | 170,181 | 125,927 |
| Revenue | US$ in thousands | 2,306,120 | 2,759,510 | 2,339,460 | 1,863,540 | 1,847,220 |
| Pretax margin | 2.10% | 6.84% | 7.37% | 9.13% | 6.82% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $48,391K ÷ $2,306,120K
= 2.10%
Stepan Co.'s pretax margin has exhibited a downward trend over the past five years, declining from 6.77% in 2019 to 2.08% in 2023. This suggests that the company's ability to generate profits before considering taxes has weakened over this period. Factors contributing to this decline may include increases in operating costs, pricing pressures, or changes in revenue generation. It is important for Stepan Co. to closely evaluate its cost structure and operational efficiency to improve its pretax margin and overall financial performance.
Peer comparison
Dec 31, 2023
Company name
Symbol
Pretax margin
Stepan Company
SCL
2.10%
Church & Dwight Company Inc
CHD
16.49%
Ecolab Inc
ECL
11.20%
Procter & Gamble Company
PG
22.21%