American Axle & Manufacturing (AXL)
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 | 62,800 | -24,500 | 66,300 | 1,200 | -610,300 |
| Revenue | US$ in thousands | 6,124,900 | 6,079,500 | 5,802,400 | 5,156,600 | 4,710,800 |
| Pretax margin | 1.03% | -0.40% | 1.14% | 0.02% | -12.96% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $62,800K ÷ $6,124,900K
= 1.03%
From the data provided, American Axle & Manufacturing's pretax margin has shown fluctuation over the years. In 2020, the company had a negative pretax margin of -12.96%, indicating that its expenses exceeded its operating income before taxes. This was a concerning sign for the company's profitability.
However, by the end of 2021, the pretax margin improved slightly to 0.02%, moving into positive territory but still at a very low level. In 2022, there was a further increase to 1.14%, indicating that the company managed to control its expenses better relative to its operating income.
In 2023, the pretax margin dipped back into negative territory at -0.40%, showing a setback in the company's profitability. Nevertheless, by the end of 2024, there was a recovery with a pretax margin of 1.03%, indicating an improvement in the company's financial performance.
Overall, American Axle & Manufacturing's pretax margin has been volatile, highlighting the importance of closely monitoring expenses and operational efficiency to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024