Stepan Company (SCL)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 48,391 | 61,368 | 95,986 | 149,216 | 188,703 | 201,566 | 190,421 | 178,700 | 172,446 | 148,528 | 152,439 | 142,281 | 124,663 | 154,298 | 138,532 | 130,409 | 125,927 | 128,624 | 125,860 | 129,518 |
| Revenue (ttm) | US$ in thousands | 2,306,119 | 2,409,124 | 2,565,319 | 2,735,064 | 2,759,510 | 2,746,863 | 2,632,121 | 2,477,612 | 2,339,459 | 2,223,132 | 2,085,032 | 1,950,387 | 1,863,537 | 1,821,473 | 1,808,473 | 1,819,863 | 1,859,078 | 1,880,747 | 1,936,514 | 2,504,002 |
| Pretax margin | 2.10% | 2.55% | 3.74% | 5.46% | 6.84% | 7.34% | 7.23% | 7.21% | 7.37% | 6.68% | 7.31% | 7.30% | 6.69% | 8.47% | 7.66% | 7.17% | 6.77% | 6.84% | 6.50% | 5.17% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $48,391K ÷ $2,306,119K
= 2.10%
Stepan Co.'s pretax margin has shown a general decreasing trend over the past eight quarters. In Q1 2023, the pretax margin was 5.43%, which was the highest during this period. However, this was a decrease compared to the previous quarter, Q4 2022, where the pretax margin was 6.80%. The company's pretax margin has declined steadily since Q4 2022.
Despite the downward trend, the pretax margin has remained positive in all quarters, indicating that Stepan Co. has been able to generate profits before accounting for taxes. It is important for the company to closely monitor and manage its cost structure and revenue generation to ensure sustainable profitability in the long run. Overall, further analysis is recommended to understand the factors contributing to the decline in the pretax margin and to develop strategies to improve profitability.
Peer comparison
Dec 31, 2023