Deluxe Corporation (DLX)
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 | 76,497 | 39,799 | 84,400 | 93,800 | 30,600 |
| Revenue | US$ in thousands | 2,121,760 | 2,192,260 | 2,238,000 | 2,022,200 | 1,790,800 |
| Pretax margin | 3.61% | 1.82% | 3.77% | 4.64% | 1.71% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $76,497K ÷ $2,121,760K
= 3.61%
Based on the data provided, Deluxe Corporation's pretax margin has shown fluctuations over the years. In December 31, 2020, the pretax margin stood at 1.71%, indicating that for every dollar of revenue generated, the company's earnings before taxes were 1.71 cents.
Subsequently, there was a significant improvement in the pretax margin by December 31, 2021, where it increased to 4.64%. This suggests that the company was able to increase its profitability relative to revenue during that period.
However, in the following year, by December 31, 2022, the pretax margin decreased to 3.77%, signaling a slight decline in profitability compared to the previous year. It is important for the company to analyze the factors contributing to this decrease and take appropriate actions to address them.
By December 31, 2023, the pretax margin further declined to 1.82%, which is close to the level observed in 2020. This drop may raise concerns about the company's efficiency in managing costs and generating profits.
Nonetheless, by December 31, 2024, there was a slight improvement in the pretax margin to 3.61%, indicating that Deluxe Corporation was able to enhance its profitability compared to the previous year.
Overall, the trend in Deluxe Corporation's pretax margin shows fluctuations over the years, with notable improvements in some periods and declines in others. It is crucial for the company to closely monitor its financial performance and implement strategies to sustain or enhance its pretax margin over time.