Grid Dynamics Holdings Inc (GDYN)
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 | 11,055 | 4,838 | -20,453 | -2,452 | -15,212 |
| Revenue | US$ in thousands | 350,571 | 312,910 | 310,482 | 211,280 | 111,283 |
| Pretax margin | 3.15% | 1.55% | -6.59% | -1.16% | -13.67% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $11,055K ÷ $350,571K
= 3.15%
Grid Dynamics Holdings Inc has shown a fluctuating pretax margin over the years based on the provided data. The company's pretax margin was negative in the years ending December 31, 2020, 2021, 2022, indicating that the company's pre-tax earnings were insufficient to cover its operating expenses and taxes during these periods.
However, there has been a positive turnaround in the pretax margin for Grid Dynamics Holdings Inc in the years ending December 31, 2023 and 2024, with values of 1.55% and 3.15% respectively. This improvement suggests that the company was able to increase its pre-tax profitability, generating earnings that exceeded its operating expenses and taxes during these years.
Overall, Grid Dynamics Holdings Inc's pretax margin reflects a mix of challenges and improvements in the company's ability to generate profits before taxes. It is essential for the company to further analyze the factors contributing to these fluctuations to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024