Sonoco Products Company (SON)
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 | 624,237 | 584,946 | -152,907 | 260,493 | 385,054 |
| Revenue | US$ in thousands | 6,905,480 | 7,401,800 | 5,720,440 | 5,349,080 | 5,501,240 |
| Pretax margin | 9.04% | 7.90% | -2.67% | 4.87% | 7.00% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $624,237K ÷ $6,905,480K
= 9.04%
The pretax margin of Sonoco Products Co. has fluctuated over the past five years. In 2023, the pretax margin increased to 9.22% from 8.08% in 2022, indicating an improvement in the company's ability to generate profits before accounting for taxes. This uptick suggests better cost management, revenue growth, or a combination of factors contributing to the company's profitability.
Compared to 2021, when the pretax margin was negative at -2.69%, the company showed a significant recovery in 2022 and continued to strengthen its profitability in 2023. The negative pretax margin in 2021 indicates that the company was unable to cover its operating expenses and taxes with its revenue during that period.
In 2020 and 2019, the pretax margin was 4.97% and 7.18%, respectively, showing a relatively consistent profitability level compared to the more fluctuating margins in the following years. Overall, the trend in Sonoco Products Co.'s pretax margin demonstrates a mix of challenges and improvements in profitability over the five-year period, with the most recent years showing positive momentum.
Peer comparison
Dec 31, 2023