Tootsie Roll Industries Inc (TR)
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 | 119,920 | 98,186 | 85,747 | 76,283 | 85,485 |
| Revenue | US$ in thousands | 766,225 | 688,173 | 571,397 | 472,151 | 529,311 |
| Pretax margin | 15.65% | 14.27% | 15.01% | 16.16% | 16.15% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $119,920K ÷ $766,225K
= 15.65%
The pretax margin of Tootsie Roll Industries, Inc. has shown some variation over the past five years. The pretax margin was 15.58% in 2023, which increased from 14.29% in 2022 but was lower compared to 15.02% in 2021. This indicates that the company's profitability before taxes improved in 2023 compared to the previous year but did not reach the levels seen in 2021.
Comparing the latest pretax margin of 15.58% in 2023 to the levels in 2020 and 2019, we see a noticeable decline from 16.19% and 16.20%, respectively. This downward trend suggests that Tootsie Roll's profitability before taxes has decreased over the past two years, which may warrant further investigation into the factors influencing the company's financial performance. It would be important to analyze the various components of the pretax margin, such as revenue and expenses, to gain a deeper understanding of the company's financial health and identify areas for improvement.
Peer comparison
Dec 31, 2023