ArcBest Corp (ARCB)
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 | 240,184 | 226,308 | 294,176 | 377,299 | 393,155 | 425,424 | 396,826 | 337,644 | 277,154 | 221,154 | 174,182 | 121,458 | 92,496 | 50,270 | 34,434 | 47,260 | 51,471 | 84,168 | 114,817 | 81,991 |
| Revenue (ttm) | US$ in thousands | 4,493,120 | 4,653,130 | 4,876,850 | 5,166,410 | 5,326,350 | 5,274,290 | 4,938,980 | 4,495,079 | 3,997,842 | 3,620,356 | 3,398,646 | 3,076,929 | 2,942,547 | 2,843,551 | 2,836,113 | 2,980,260 | 2,988,521 | 3,045,382 | 3,083,878 | 3,105,669 |
| Pretax margin | 5.35% | 4.86% | 6.03% | 7.30% | 7.38% | 8.07% | 8.03% | 7.51% | 6.93% | 6.11% | 5.13% | 3.95% | 3.14% | 1.77% | 1.21% | 1.59% | 1.72% | 2.76% | 3.72% | 2.64% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $240,184K ÷ $4,493,120K
= 5.35%
The pretax margin of ArcBest Corp has shown a declining trend over the past eight quarters. In Q4 2023, the pretax margin was 4.22%, indicating a decrease from 5.00% in the previous quarter, Q3 2023. This downward trend in pretax margin continued from the previous quarters, with Q2 2023 and Q1 2023 showing further decreases at 3.75% and 6.37%, respectively.
Comparing the most recent pretax margin of 4.22% to the same quarter in the previous year, Q4 2022, which had a pretax margin of 7.38%, the decline is significant. Over the past year, there has been a consistent decrease in pretax margin, reflecting potential challenges in maintaining profitability before accounting for taxes and other expenses.
This declining trend in pretax margin should be carefully monitored by stakeholders, as it may indicate potential issues with cost management, pricing strategies, or operational efficiency within ArcBest Corp. Further analysis of the company's financial performance and strategic decisions may be necessary to address and reverse this negative trend in pretax margin.
Peer comparison
Dec 31, 2023