Grocery Outlet Holding Corp (GO)
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 | 56,171 | 104,081 | 75,749 | 77,501 | 87,134 |
| Revenue | US$ in thousands | 4,371,500 | 3,969,450 | 3,578,100 | 3,079,580 | 3,134,640 |
| Pretax margin | 1.28% | 2.62% | 2.12% | 2.52% | 2.78% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $56,171K ÷ $4,371,500K
= 1.28%
Over the five-year period from December 31, 2020, to December 31, 2024, Grocery Outlet Holding Corp's pretax margin has shown some fluctuations. The pretax margin started at 2.78% in 2020 and slightly decreased to 2.52% in 2021 before experiencing a further drop to 2.12% in 2022. However, there was a slight improvement in 2023, where the pretax margin increased to 2.62%. Notably, in 2024, the pretax margin significantly decreased to 1.28%.
The declining trend in pretax margin from 2020 to 2024 may indicate challenges faced by the company in maintaining profitability relative to its total revenue before accounting for taxes and other expenses. The drop in pretax margin in 2024 could be a cause for concern, highlighting potential issues in cost management, revenue generation, or operational efficiency during that period. Further analysis of the company's financial statements and business operations would be necessary to pinpoint the specific factors contributing to these fluctuations and to determine any necessary strategic adjustments.
Peer comparison
Dec 31, 2024