Earnings Analysis for DOW (Last 3 Years)

Revenue Analysis:

Total and Operating Revenue: Over the past year, total revenue has shown some volatility, with the highest reported amount in Q2 2023 ($11.42 billion) and the lowest in Q4 2023 ($10.62 billion), indicating a significant seasonal and operational variance.

Gross Profit Margins: DOW’s Gross Profit Margins fluctuated from a high of $1.547 billion in Q2 2023 to a low of $975 million in Q4 2023, reflecting changes in cost management and sales efficiency.

Cost Management:

Cost of Revenue: Cost of Revenue has consistently been high, peaking at $10.07 billion in Q1 2023 and decreasing slightly over consequent quarters, reflecting possibly improved operational efficiency or decreased production costs.

Operating Expense: Operating Expenses varied, with the highest at $723 million in Q1 2023 and a decrease to $658 million by Q3 2023, suggesting better control or a reduction in operational spending.

Total Expenses: Continued to incline from $10.35 billion in Q1 2023, reaching $10.35 billion by Q4 2023, mirroring similar trends in costs and possibly fixed cost structures in the operation.

Profitability Analysis:

EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a peak of $1.536 billion in Q2 2023, reducing to $502 million by the end of the year. This indicates higher operational profitability mid-year with a subsequent decrease possibly due to lower revenue and higher cost ratios.

Operating Income: Operating Income had a concerning drop to -$155 million in Q4 2023 from $851 million in Q2 2023, pointing out potential issues in managing operational costs or reduced market conditions.

Pretax Income: Moved from a positive $711 million in Q2 2023 to a distressing negative of $352 million by the end of 2023, underscoring potential non-operational losses or increased tax burdens.

Net Income: Reflected similar trends as Pretax Income, with a high of $501 million in mid-2023 to significant losses by Q4 2023, highlighting critical areas in need of financial strategy revision.

Cash Flow Indicators:

Reconciled Depreciation: Mostly consistent, suggesting stable capital expenditure on assets.

Interest Expense: Interest Expense was high throughout the period, emphasizing a heavy debt load which could be impacting net earnings.

Taxation:

Tax Rate: Varied across the quarters, influencing net income after taxes.

Tax Provision: Fluctuated significantly, with a tax provision as high as $210 million and as low as -$470 million, affecting the net profitability substantially.

Tax Effect of Unusual Items: These effects varied, showing potential one-off events affecting financial results.

Shareholder Metrics:

Diluted and Basic EPS: Both figures reflected corresponding declines from gains of $0.68 in Q2 2023 to losses of -$0.15 by Q4 2023, potentially worrying signals for shareholders.

Average Shares: Remained largely consistent, suggesting no major buybacks or dilutions affecting per-share measurements.

Net Income Available to Common Stockholders: Showed the direct impact of operational performance and other financial activities on shareholders’ value.

Conclusion:

DOW has experienced significant financial variances over the past years with potential operational highs but concerning declines in profitability and net income towards the end of 2023. There appears to be a need for rigorous cost control, reconsideration of financial and operational strategies, and possibly restructuring to ensure sustained profitability and shareholder value.