Gates Industrial Corporation plc (GTES)

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 302,400 261,200 235,700 315,500 60,100
Revenue US$ in thousands 3,408,200 3,570,200 3,554,200 3,474,400 2,793,000
Pretax margin 8.87% 7.32% 6.63% 9.08% 2.15%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $302,400K ÷ $3,408,200K
= 8.87%

Gates Industrial Corporation plc has shown varying pretax margins over the past five years. The pretax margin was 2.15% on December 31, 2020, indicating a relatively low profitability before considering taxes. However, there has been a positive trend in the subsequent years, with pretax margins increasing to 9.08% on December 31, 2021, 6.63% on December 31, 2022, 7.32% on December 31, 2023, and reaching 8.87% on December 31, 2024.

This improvement in pretax margin suggests that the company has been able to manage its expenses more effectively or generate higher revenues relative to costs over the years. It indicates an enhanced operational efficiency and profitability before tax considerations. However, it would be beneficial to further investigate the factors contributing to these fluctuations in pretax margin to assess the company's overall financial performance and sustainability.