CarGurus (CARG)
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 | 66,576 | 116,795 | 148,231 | 99,110 | 38,705 |
| Revenue | US$ in thousands | 916,367 | 1,656,550 | 951,443 | 551,428 | 589,606 |
| Pretax margin | 7.27% | 7.05% | 15.58% | 17.97% | 6.56% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $66,576K ÷ $916,367K
= 7.27%
CarGurus Inc's pretax margin has shown fluctuations over the past five years, ranging from 5.65% in 2023 to 17.97% in 2020. The company experienced a notable decrease in pretax margin in 2023 compared to the prior year, dropping from 6.73% in 2022 to 5.65% in 2023. This decline suggests a potential decrease in profitability before accounting for taxes. However, it is important to note that the pretax margin in 2023 is still higher than the levels observed in 2019 and 2021.
The significant variation in pretax margin over the years may reflect changes in the company's cost structure, revenue generation, or operational efficiency. Further analysis of CarGurus Inc's financial performance, industry trends, and external factors impacting the business would be necessary to gain a deeper understanding of the drivers behind the fluctuating pretax margin.
Peer comparison
Dec 31, 2023