AutoNation Inc (AN)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,351,100	1,451,100	1,597,100	1,736,600	1,833,200	1,961,400	1,961,500	1,968,700	1,808,100	1,503,500	1,273,500	1,138,400	549,900	559,800	452,900	214,500	611,800	528,900	537,100	528,900
Revenue (ttm)	US$ in thousands	26,948,900	26,878,500	26,651,800	26,630,900	26,985,000	26,870,300	26,583,800	26,693,000	25,844,000	25,046,800	24,072,200	21,626,800	20,390,000	20,153,800	20,210,100	21,020,900	21,335,700	21,198,500	21,086,500	21,134,700
Pretax margin		5.01%	5.40%	5.99%	6.52%	6.79%	7.30%	7.38%	7.38%	7.00%	6.00%	5.29%	5.26%	2.70%	2.78%	2.24%	1.02%	2.87%	2.49%	2.55%	2.50%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,351,100K ÷ $26,948,900K
= 5.01%

Autonation Inc.'s pretax margin has shown a decreasing trend over the past four quarters. In Q4 2022, the pretax margin stood at 6.79%, which decreased to 6.52% in Q1 2023, further declining to 5.99% in Q2 2023, and then to 5.40% in Q3 2023, and eventually to 5.01% in Q4 2023. This declining trend indicates that the company's profitability before considering taxes has been on a downward trajectory. It is essential for Autonation Inc. to closely monitor and address factors contributing to this decline to maintain and improve its financial performance in the future.