Autoliv Inc (ALV)

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 875,000 612,000 603,000 614,000 291,200
Revenue US$ in thousands 10,390,000 10,475,000 8,842,000 8,230,000 7,447,400
Pretax margin 8.42% 5.84% 6.82% 7.46% 3.91%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $875,000K ÷ $10,390,000K
= 8.42%

The pretax margin of Autoliv Inc has shown fluctuations over the years based on the provided data.
- In December 2020, the pretax margin was 3.91%, indicating that for every dollar of revenue generated, the company was able to retain 3.91 cents before accounting for taxes.
- By the end of December 2021, the pretax margin improved to 7.46%, suggesting that the company became more efficient at managing its expenses relative to its revenue.
- In December 2022, the pretax margin slightly decreased to 6.82%, indicating a dip in profitability before tax obligations.
- The pretax margin further declined to 5.84% in December 2023, which may suggest challenges in cost control or revenue generation.
- However, by December 2024, the pretax margin improved significantly to 8.42%, showcasing a strong performance and enhanced profitability.

Overall, the trend in Autoliv Inc's pretax margin indicates a mix of improvements and fluctuations, highlighting the company's ability to manage costs and generate profits before tax obligations over the years.