Genuine Parts Co (GPC)
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 | 1,175,970 | 1,742,350 | 1,572,600 | 1,200,350 | 379,368 |
| Revenue | US$ in thousands | 23,486,600 | 23,090,600 | 22,096,000 | 18,870,500 | 16,537,400 |
| Pretax margin | 5.01% | 7.55% | 7.12% | 6.36% | 2.29% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,175,970K ÷ $23,486,600K
= 5.01%
Genuine Parts Co's pretax margin has shown fluctuations over the past five years. The pretax margin increased steadily from 2.29% in December 31, 2020, to 7.55% in December 31, 2023, indicating improving profitability before accounting for taxes. However, there was a slight dip in the pretax margin to 5.01% in December 31, 2024. It is essential to further analyze the factors behind these fluctuations to understand the company's financial performance and sustainability over time.