Cars.com Inc (CARS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 61,863 | 18,105 | 22,576 | 7,719 | -936,409 |
| Revenue | US$ in thousands | 719,152 | 689,183 | 653,876 | 623,683 | 547,503 |
| Pretax margin | 8.60% | 2.63% | 3.45% | 1.24% | -171.03% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $61,863K ÷ $719,152K
= 8.60%
The pretax margin of Cars.com Inc has shown significant fluctuations over the past five years. It sharply declined to a negative figure of -171.03% as of December 31, 2020, indicating the company incurred substantial losses compared to its revenue. However, there has been a notable improvement in profitability in the subsequent years. The pretax margin recovered to 1.24% by December 31, 2021, suggesting the company managed to control costs and enhance its operational efficiency.
The positive trend continued in the following years, with the pretax margin increasing to 3.45% by December 31, 2022, and further to 2.63% by December 31, 2023. This demonstrates a gradual but consistent improvement in the company's ability to generate profits before accounting for taxes. Notably, by December 31, 2024, the pretax margin saw a significant jump to 8.60%, indicating a substantial boost in profitability compared to prior years.
Overall, the analysis of Cars.com Inc's pretax margin reflects both challenges and positive developments in the company's financial performance over the five-year period, indicating a turnaround from losses to profitability and potentially more effective cost management strategies.
Peer comparison
Dec 31, 2024