Group 1 Automotive Inc (GPI)
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 | 799,800 | 982,600 | 727,600 | 370,700 | 227,700 |
| Revenue | US$ in thousands | 17,760,600 | 16,137,600 | 13,416,000 | 10,768,700 | 11,964,300 |
| Pretax margin | 4.50% | 6.09% | 5.42% | 3.44% | 1.90% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $799,800K ÷ $17,760,600K
= 4.50%
Group 1 Automotive, Inc. has demonstrated varying pretax margins over the past five years, ranging from 1.89% in 2019 to 6.07% in 2022. The pretax margin indicates the company's efficiency in generating profits before accounting for taxes relative to its total revenue.
In 2023, the pretax margin decreased to 4.48% from the previous year's level of 6.07%. Despite this decline, the company still managed to maintain a reasonable level of profitability compared to historical performance. The 2023 pretax margin of 4.48% suggests that for every dollar of revenue, Group 1 Automotive, Inc. was able to generate 4.48 cents in pretax profit.
It is important for the company to monitor and analyze factors contributing to the fluctuating pretax margins, such as changes in expenses, pricing strategies, and revenue streams, in order to optimize profitability and enhance overall financial performance in the future.
Peer comparison
Dec 31, 2023