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.