CarGurus (CARG)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	66,576	112,410	112,251	111,846	116,795	122,716	132,435	147,020	148,231	141,576	145,197	115,186	99,110	80,215	47,157	42,371	38,705	31,801	27,565	27,824
Revenue (ttm)	US$ in thousands	917,072	980,534	1,187,569	1,459,061	1,657,093	1,707,547	1,504,008	1,210,527	951,422	763,580	688,137	565,126	551,498	558,153	561,143	611,437	589,749	557,686	526,266	491,560
Pretax margin		7.26%	11.46%	9.45%	7.67%	7.05%	7.19%	8.81%	12.15%	15.58%	18.54%	21.10%	20.38%	17.97%	14.37%	8.40%	6.93%	6.56%	5.70%	5.24%	5.66%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $66,576K ÷ $917,072K
= 7.26%

To analyze the pretax margin of CarGurus Inc over the past eight quarters, it is evident that there has been fluctuation in the company's profitability before accounting for income taxes.

In Q4 2023, the pretax margin was 5.65%, showing a decline from the previous quarter's 10.29%. This decrease suggests a lower level of profitability relative to revenue generated during this period.

Q3 2023 witnessed an improvement in pretax margin to 10.29%, indicating the company's ability to generate higher earnings before taxes compared to Q2 2023 and Q1 2023 where the margins were 8.63% and 7.09%, respectively.

The trend in pretax margin over the past year shows some variability. Q4 2022 had a pretax margin of 6.73%, indicating a slight increase from the previous quarter. Q3 2022 and Q2 2022 had pretax margins of 7.22% and 8.96%, respectively, demonstrating fluctuations in profitability. Q1 2022 stood out with the highest pretax margin of 12.38% over the observed period.

Overall, the analysis of CarGurus Inc's pretax margin reveals both positive and negative trends in profitability over the past eight quarters, indicating the company's ability to manage its costs and generate earnings before taxes.