Whirlpool Corporation (WHR)
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 | -313,000 | 558,000 | -1,254,000 | 2,301,000 | 1,457,000 |
| Revenue | US$ in thousands | 16,343,000 | 18,998,000 | 17,719,000 | 21,915,000 | 19,274,000 |
| Pretax margin | -1.92% | 2.94% | -7.08% | 10.50% | 7.56% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-313,000K ÷ $16,343,000K
= -1.92%
The pretax margin reflects Whirlpool Corporation's efficiency in generating profits before accounting for taxes, as a percentage of its total revenue. Analyzing the data provided, we observe fluctuations in the company's pretax margin over the years.
In December 31, 2020, the pretax margin stood at 7.56%, indicating that for every dollar of revenue generated, Whirlpool was able to retain 7.56 cents as pretax profit.
By December 31, 2021, the pretax margin improved to 10.50%, indicating enhanced profitability and potentially more effective cost management strategies.
However, there was a significant decline in profitability by December 31, 2022, with a pretax margin of -7.08%. A negative pretax margin suggests that the company incurred losses before taxes, which could be attributed to various factors such as high costs or lower revenue.
Whirlpool managed to recover slightly by December 31, 2023, with a pretax margin of 2.94%, indicating a return to profitability but still below the levels seen in previous years.
Unfortunately, by December 31, 2024, the pretax margin declined again to -1.92%, signifying a decrease in profitability once more. This negative pretax margin indicates that the company may be facing challenges in generating profits before accounting for taxes.
In conclusion, the fluctuating trend in Whirlpool Corporation's pretax margin highlights the importance of closely monitoring and addressing factors affecting profitability to ensure sustainable financial performance. It is essential for the company to implement effective strategies to improve cost-efficiency and revenue generation to maintain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024