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.
Peer comparison
Dec 31, 2023