KAR Auction Services Inc (KAR)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-145,800	-112,700	-137,200	276,200	251,200	179,200	187,600	1,200	81,600	78,100	126,800	76,000	5,400	55,000	45,500	146,700	226,200	266,200	303,900	348,700
Revenue (ttm)	US$ in thousands	1,645,100	1,626,600	1,603,300	1,570,600	1,519,400	1,504,300	1,458,400	1,450,200	1,450,600	1,622,500	1,869,000	1,912,000	2,187,700	2,329,400	2,437,700	2,737,800	2,781,900	2,704,400	2,614,900	2,519,200
Pretax margin		-8.86%	-6.93%	-8.56%	17.59%	16.53%	11.91%	12.86%	0.08%	5.63%	4.81%	6.78%	3.97%	0.25%	2.36%	1.87%	5.36%	8.13%	9.84%	11.62%	13.84%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-145,800K ÷ $1,645,100K
= -8.86%

To analyze Openlane Inc.'s pretax margin, we observe a fluctuating trend over the past eight quarters. The pretax margin has been inconsistent, ranging from negative figures such as -8.91%, -6.63%, and -7.87% to positive values like 4.57% and 2.54%. The trend suggests variability in the company's ability to generate profits before accounting for taxes and expenses. However, the most recent quarter (Q4 2023) indicates a significant decline, potentially signaling challenges in managing costs and improving profitability. To better understand Openlane Inc.'s financial performance, it would be valuable to assess the factors contributing to these fluctuations and evaluate the company's overall financial health.