Lithia Motors Inc (LAD)
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 | 1,058,700 | 1,351,400 | 1,719,400 | 1,482,200 | 648,500 |
| Revenue | US$ in thousands | 36,218,600 | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 |
| Pretax margin | 2.92% | 4.38% | 6.11% | 6.52% | 4.96% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,058,700K ÷ $36,218,600K
= 2.92%
Lithia Motors Inc's pretax margin has shown fluctuations over the past five years. It increased from 4.96% in December 31, 2020, to a peak of 6.52% in December 31, 2021. However, in the following year, it slightly declined to 6.11%.
By December 31, 2023, the pretax margin dropped to 4.38%, indicating a decrease in profitability. The trend worsened in December 31, 2024, with the pretax margin falling to 2.92%, suggesting potential challenges for the company in generating profits before taxes.
Overall, while there have been periods of improvement in pretax margin, the recent decline raises concerns about Lithia Motors Inc's ability to maintain profitability in the face of potentially changing market conditions.
Peer comparison
Dec 31, 2024