KAR Auction Services Inc (KAR)
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 | -145,800 | 251,200 | 81,600 | -10,700 | 226,200 |
| Revenue | US$ in thousands | 1,645,100 | 1,519,400 | 1,450,600 | 1,326,900 | 2,781,900 |
| Pretax margin | -8.86% | 16.53% | 5.63% | -0.81% | 8.13% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-145,800K ÷ $1,645,100K
= -8.86%
The pretax margin of Openlane Inc. has displayed significant fluctuations over the past five years. In 2019 and 2021, the company recorded relatively healthy pretax margins of 4.68% and 4.51%, respectively, indicating the ability to generate profits before accounting for taxes. However, in 2020 and 2023, Openlane Inc. experienced pretax margins of a mere 0.25% and -8.91%, signifying a decline in profitability and potential financial challenges.
The negative pretax margin in 2023 reflects that Openlane Inc. incurred more expenses than the revenue it generated, resulting in an operating loss before tax. This could be attributed to factors such as increased costs, lower sales, or inefficiencies in operations. It is crucial for the company to address these issues to restore profitability and financial health in the coming periods.
Overall, the fluctuating pretax margins of Openlane Inc. emphasize the importance of closely monitoring and managing operational efficiency, cost control, and revenue generation to sustain profitability and long-term success.
Peer comparison
Dec 31, 2023