Gates Industrial Corporation plc (GTES)
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 | 261,200 | 235,700 | 315,500 | 60,100 | 194,200 |
| Revenue | US$ in thousands | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 | 3,087,100 |
| Pretax margin | 7.32% | 6.63% | 9.08% | 2.15% | 6.29% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $261,200K ÷ $3,570,200K
= 7.32%
The pretax margin of Gates Industrial Corporation plc has fluctuated over the past five years. In 2023, the pretax margin increased to 7.32% from 6.63% in 2022, indicating improved profitability before accounting for taxes. The pretax margin was at its highest in 2021 at 9.08%, reflecting a particularly strong performance in that year. In 2020, the pretax margin was only 2.15%, which was significantly lower compared to the other years, suggesting potential challenges faced by the company. The pretax margin then rebounded to 6.29% in 2019, indicating a recovery in profitability.
Overall, the trend in the pretax margin shows variability in the company's ability to generate earnings before taxes relative to its total revenue. It is important for Gates Industrial Corporation plc to continue monitoring and managing its cost structure and revenue generation to sustain and improve its pretax margin in the future.
Peer comparison
Dec 31, 2023