Axalta Coating Systems Ltd (AXTA)
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 | 353,600 | 256,700 | 340,000 | 121,800 | 326,400 |
| Revenue | US$ in thousands | 5,184,100 | 4,884,400 | 4,416,200 | 3,737,600 | 4,482,200 |
| Pretax margin | 6.82% | 5.26% | 7.70% | 3.26% | 7.28% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $353,600K ÷ $5,184,100K
= 6.82%
The pretax margin reflects Axalta Coating Systems Ltd's ability to generate profits before accounting for taxes as a percentage of its total revenue.
Looking at the trend over the past five years, we observe fluctuations in the company's pretax margin. In 2023, the pretax margin improved to 6.84% from 5.27% in 2022, indicating an enhanced ability to generate profits relative to the prior year. This increase is positive as it suggests the company's cost control measures, revenue management, and operational efficiencies may have improved.
Comparing 2023 to earlier years, the pretax margin of 6.84% is slightly higher than the 7.71% seen in 2021 and the 7.36% in 2019, but notably higher than the 3.27% in 2020. However, it is worth noting that the pretax margin in 2023 does not reach the peak level seen in 2019, indicating a fluctuating profitability trend over the past five years.
Further analysis of the company's financial statements, operational efficiencies, cost structures, and revenue streams could provide insights into the drivers behind these variations in the pretax margin. Overall, while the pretax margin in 2023 improved from the previous year, it is important for Axalta Coating Systems Ltd to continue monitoring and managing its profitability metrics to ensure sustained growth and long-term financial health.
Peer comparison
Dec 31, 2023