Sonoco Products Company (SON)
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 | 63,486 | 614,832 | 571,282 | -160,982 | 255,592 |
| Revenue | US$ in thousands | 5,305,360 | 6,781,290 | 7,250,550 | 5,590,440 | 5,237,440 |
| Pretax margin | 1.20% | 9.07% | 7.88% | -2.88% | 4.88% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $63,486K ÷ $5,305,360K
= 1.20%
The pretax margin of Sonoco Products Company has shown fluctuating trends over the past five years based on the provided data. In 2020, the pretax margin stood at 4.88%, indicating that for every dollar of revenue generated, the company retained 4.88 cents as pre-tax profit. However, the margin turned negative in 2021, reaching -2.88%, which suggests that the company incurred pre-tax losses during that year.
The trend reversed in 2022, with the pretax margin increasing to 7.88%, showcasing improved profitability. This positive momentum continued into 2023, as the pretax margin further grew to 9.07%, signaling strong operational efficiency and cost management.
In contrast, the pretax margin decreased notably in 2024 to 1.20%, reflecting a potential decline in profitability or increase in expenses compared to the previous year. This dip may warrant further examination to identify the factors contributing to the margin decrease and assess the company's financial health and performance. Overall, while the pretax margin has exhibited variability, it is essential for stakeholders to monitor these fluctuations to gain insights into Sonoco Products Company's financial performance and profitability.
Peer comparison
Dec 31, 2024