Lithia Motors Inc (LAD)
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 | 1,351,400 | 1,719,400 | 1,482,200 | 648,500 | 375,400 |
| Revenue | US$ in thousands | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 | 12,624,200 |
| Pretax margin | 4.38% | 6.11% | 6.52% | 4.96% | 2.97% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,351,400K ÷ $30,878,400K
= 4.38%
Lithia Motors, Inc.'s pretax margin has shown varying trends over the past five years. In 2023, the pretax margin stands at 4.39%, representing a decrease from the previous year's 6.14%. Despite this decrease, it is still higher than the pretax margins recorded in 2020 and 2019, which were 4.94% and 2.96%, respectively.
The highest pretax margin in the provided period was observed in 2021 at 6.50%. This indicates a relatively strong performance in generating profits before accounting for taxes that year. However, the downward trend in pretax margin from 2021 to 2023 suggests a potential challenge in maintaining profitability levels.
It is crucial for the company to closely monitor and evaluate the factors contributing to the fluctuations in the pretax margin. By identifying and addressing any inefficiencies or cost structures impacting profitability, Lithia Motors, Inc. can work towards achieving sustainable and improved financial performance in the future.
Peer comparison
Dec 31, 2023