KAR Auction Services Inc (KAR)
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 | 157,900 | -146,500 | 38,600 | 101,500 | 5,400 |
| Revenue | US$ in thousands | 1,788,500 | 1,645,100 | 1,519,400 | 2,251,600 | 2,187,700 |
| Pretax margin | 8.83% | -8.91% | 2.54% | 4.51% | 0.25% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $157,900K ÷ $1,788,500K
= 8.83%
The pretax margin of KAR Auction Services Inc experienced fluctuations over the years. In 2020, the company's pretax margin was 0.25%, indicating that for every dollar of revenue generated, the company retained 0.25 cents before accounting for taxes.
In 2021, the pretax margin improved significantly to 4.51%, reflecting enhanced operational efficiency and cost management. However, in 2022, there was a slight decrease in the pretax margin to 2.54%, which could be attributed to various factors such as changes in revenue mix or operating expenses.
The pretax margin took a significant downturn in 2023, plunging to -8.91%. A negative pretax margin indicates that the company incurred losses before tax, which could result from a combination of decreased revenues, increased expenses, or one-time charges.
Fortunately, the pretax margin bounced back strongly in 2024, reaching 8.83%. This sharp increase suggests that KAR Auction Services Inc made significant improvements in its cost structure, revenue generation, or operational efficiency during that year.
Overall, analyzing the pretax margin trend provides valuable insights into the company's profitability and operational performance over the years, highlighting areas of strength and areas that may require attention in the future.
Peer comparison
Dec 31, 2024