Avis Budget Group Inc (CAR)
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 | 1,911,000 | 3,644,000 | 1,710,000 | -956,000 | 287,000 |
| Revenue | US$ in thousands | 12,008,000 | 11,994,000 | 9,313,000 | 5,402,000 | 9,172,000 |
| Pretax margin | 15.91% | 30.38% | 18.36% | -17.70% | 3.13% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,911,000K ÷ $12,008,000K
= 15.91%
Avis Budget Group Inc's pretax margin has exhibited significant fluctuations over the past five years. In 2023, the pretax margin stood at 15.94%, representing a decline from the previous year's level of 30.32%. However, compared to 2021 when the pretax margin was 18.34%, the 2023 performance is slightly weaker.
Notably, there was a substantial improvement in profitability in 2022 compared to the negative pretax margin of -17.70% recorded in 2020. This could indicate successful cost management or increased revenue generation during the year.
Looking back further, in 2019, the pretax margin was at a modest 3.13%, indicating a notable improvement over the negative margin experienced in 2020.
Overall, fluctuations in Avis Budget Group Inc's pretax margin suggest volatility in the company's profitability, impacted by factors such as cost efficiency, revenue fluctuations, and economic conditions. It will be important for the company to closely monitor and manage its cost structures and revenue streams to enhance profitability and maintain sustainable performance in the future.
Peer comparison
Dec 31, 2023