Equifax Inc (EFX)
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 | 711,500 | 925,700 | 944,900 | 679,100 | -419,800 |
| Revenue | US$ in thousands | 5,020,200 | 4,937,400 | 4,775,900 | 3,978,400 | 3,392,900 |
| Pretax margin | 14.17% | 18.75% | 19.78% | 17.07% | -12.37% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $711,500K ÷ $5,020,200K
= 14.17%
The pretax margin of Equifax, Inc. has displayed varying trends over the past five years. In 2023, the pretax margin stood at 13.63%, indicating that for every dollar of revenue generated, the company retained approximately $0.1363 as pretax profit after deducting operating expenses but before accounting for taxes. This marked a decrease from the previous year's pretax margin of 18.15% in 2022.
Comparing the latest figure to 2021 and 2020, where the pretax margins were 19.28% and 16.60%, respectively, the 2023 pretax margin appears to show a declining trend in profitability.
Notably, in 2019, Equifax, Inc. reported a negative pretax margin of -12.34%, indicating that the company incurred pretax losses during that period. However, the company has since made significant improvements in profitability, as indicated by positive pretax margins in the subsequent years.
It is essential for Equifax, Inc. to monitor and analyze factors affecting its pretax margin, such as operating efficiency, cost management, revenue growth, and other economic conditions, to sustain and potentially improve its profitability in the future.