Avis Budget Group Inc (CAR)
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 | -2,627,000 | 1,914,000 | 3,636,000 | 1,708,000 | -956,000 |
| Revenue | US$ in thousands | 11,789,000 | 12,008,000 | 11,994,000 | 9,313,000 | 5,402,000 |
| Pretax margin | -22.28% | 15.94% | 30.32% | 18.34% | -17.70% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-2,627,000K ÷ $11,789,000K
= -22.28%
The pretax margin, which is a key profitability ratio reflecting the company's ability to generate profits before taking into account taxes, for Avis Budget Group Inc has shown significant fluctuations over the past five years.
In December 2020, the pretax margin was recorded at -17.70%, indicating that the company was incurring losses before tax expenses. However, there has been a notable turnaround in the company's performance as the pretax margin increased to 18.34% by December 2021, suggesting improved profitability.
The positive trend continued, with the pretax margin reaching 30.32% by December 2022, demonstrating strong profitability levels. However, there was a slight decline in performance by December 2023, with the pretax margin decreasing to 15.94%.
The most recent data point in December 2024 shows a significant downturn in the company's profitability, with the pretax margin plummeting to -22.28%. This sharp decline raises concerns about the company's ability to generate profits before tax expenses and indicates potential challenges in its operations during that period.
Overall, the pretax margin trend for Avis Budget Group Inc has been volatile, with fluctuations in profitability levels over the five-year period. It is essential for the company to closely monitor its financial performance and implement strategies to maintain or improve profitability in the future.
Peer comparison
Dec 31, 2024