Olympic Steel Inc (ZEUS)
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 | 61,587 | 123,622 | 164,799 | -6,911 | 5,289 |
| Revenue | US$ in thousands | 2,158,010 | 2,562,110 | 2,318,270 | 1,232,060 | 1,579,250 |
| Pretax margin | 2.85% | 4.83% | 7.11% | -0.56% | 0.33% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $61,587K ÷ $2,158,010K
= 2.85%
Pretax margin is a key profitability metric that indicates the company's efficiency in generating profits before taxes relative to its total revenue. A declining trend in Olympic Steel Inc.'s pretax margin is evident over the past five years, decreasing from 7.13% in 2021 to 2.85% in 2023. This signifies a potential decrease in the company's ability to control costs and manage operating expenses, impacting its bottom-line profitability. It is important for the company to closely monitor and address the factors contributing to this downward trend in order to sustain and improve its overall financial performance.
Peer comparison
Dec 31, 2023