Forward Air Corporation (FWRD)
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 | -1,249,830 | 56,639 | 260,838 | 154,963 | 69,360 |
| Revenue | US$ in thousands | 2,474,260 | 1,370,740 | 1,973,400 | 1,662,430 | 1,269,570 |
| Pretax margin | -50.51% | 4.13% | 13.22% | 9.32% | 5.46% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-1,249,830K ÷ $2,474,260K
= -50.51%
The pretax margin of Forward Air Corporation has shown varying performance over the years based on the provided data. In December 2020, the pretax margin was 5.46%, which increased to 9.32% by December 2021, indicating improved profitability. In December 2022, the pretax margin saw a significant increase to 13.22%, reflecting strong operational efficiency and cost management.
However, in December 2023, the pretax margin dropped to 4.13%, suggesting potential challenges or increased expenses impacting the company's profitability. The most concerning observation is in December 2024, where the pretax margin is reported at -50.51%. This large negative margin raises red flags and requires further investigation into the financial performance and potential reasons for such a drastic decline.
In conclusion, while Forward Air Corporation has demonstrated positive trends in pretax margin in some years, the significant drop in profitability in December 2024 raises concerns about the company's financial health and performance.
Peer comparison
Dec 31, 2024