Autoliv Inc (ALV)
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 | 611,000 | 601,000 | 612,000 | 290,000 | 648,000 |
| Revenue | US$ in thousands | 10,353,000 | 8,838,000 | 8,201,000 | 7,352,100 | 8,465,200 |
| Pretax margin | 5.90% | 6.80% | 7.46% | 3.94% | 7.65% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $611,000K ÷ $10,353,000K
= 5.90%
The pretax margin of Autoliv Inc. has shown some fluctuations over the past five years. In 2023, the pretax margin decreased to 5.83% from 6.82% in 2022, representing a decline in profitability before considering taxes. This decrease may indicate challenges in controlling costs or generating sufficient revenue to cover operating expenses. However, it is important to note that the pretax margin in 2023 is still higher than in 2020 when it was at 3.91%.
Comparing the pretax margins over the last five years, it is evident that Autoliv Inc. experienced its highest pretax margin in 2021 at 7.47% and its lowest in 2020 at 3.91%. The significant increase from 2020 to 2021 could suggest improvements in operational efficiency, pricing strategies, or cost management during that period. However, the subsequent decline in 2023 could indicate challenges or changes that affected profitability.
Overall, analyzing pretax margin trends provides insights into Autoliv Inc.'s ability to generate profits before accounting for tax expenses. It is essential for the company to closely monitor its financial performance and implement strategies to sustain or improve profitability levels over time.
Peer comparison
Dec 31, 2023