Cars.com Inc (CARS)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	61,863	43,648	21,748	6,401	18,105	32,676	28,048	33,281	22,576	665	5,225	4,718	9,483	14,963	22,633	-7,735	-936,409	-939,494	-1,403,761	-1,385,868
Revenue (ttm)	US$ in thousands	719,152	718,327	713,009	702,291	689,183	677,778	668,040	662,737	653,876	643,980	635,938	628,595	623,683	618,386	606,225	552,704	547,503	546,682	554,380	600,578
Pretax margin		8.60%	6.08%	3.05%	0.91%	2.63%	4.82%	4.20%	5.02%	3.45%	0.10%	0.82%	0.75%	1.52%	2.42%	3.73%	-1.40%	-171.03%	-171.85%	-253.21%	-230.76%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $61,863K ÷ $719,152K
= 8.60%

Based on the pretax margin data provided for Cars.com Inc, we can observe a significant improvement in the company's profitability over the period from March 31, 2020, to December 31, 2024. The pretax margin, which indicates the proportion of earnings remaining after accounting for operating expenses but before taxes, shows a gradual recovery from deeply negative figures to positive percentages.

Initially, between March 31, 2020, and June 30, 2021, the company experienced consistently negative pretax margins, indicating that its operating expenses were exceeding its revenues. However, starting from March 31, 2021, the pretax margin gradually improved, turning positive by June 30, 2021. This positive trend continued through the following quarters, with pretax margins fluctuating between 0.75% and 8.60% by December 31, 2024.

The positive pretax margins in the later periods suggest that Cars.com Inc was able to effectively manage its operating expenses and generate higher revenues relative to its costs. This improvement is a positive indicator of the company's operational efficiency and profitability, demonstrating its ability to generate earnings before taxes.

Overall, the upward trend in pretax margins showcases a positive trajectory for Cars.com Inc's financial performance and suggests that the company was able to enhance its profitability over the analyzed period.