Cars.com Inc (CARS)
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 | 18,105 | 22,576 | 9,483 | -936,409 | -475,279 |
| Revenue | US$ in thousands | 658,830 | 618,556 | 584,954 | 509,647 | 575,908 |
| Pretax margin | 2.75% | 3.65% | 1.62% | -183.74% | -82.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $18,105K ÷ $658,830K
= 2.75%
The pretax margin of Cars.com has fluctuated over the past five years. In 2023, the pretax margin was 2.63%, down from 3.45% in 2022. This decline suggests a decrease in profitability before accounting for taxes. However, in 2021, the pretax margin improved to 1.52% from a significantly negative position in 2020 (-171.03%), indicating a recovery in profitability. The substantial negative margin in 2020 could be attributed to extraordinary expenses or losses incurred by the company. Overall, the trend in pretax margin for Cars.com shows variability in profitability performance over the past five years.
Peer comparison
Dec 31, 2023