Lithia Motors Inc (LAD)

Pretax margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 1,058,900 1,050,100 1,133,600 1,256,300 1,351,500 1,408,300 1,505,400 1,564,200 1,719,200 1,815,600 1,781,700 1,739,200 1,482,200 1,308,800 1,106,800 795,700 648,500 486,300 384,600 361,800
Revenue (ttm) US$ in thousands 36,158,900 34,572,100 33,569,600 32,405,400 30,848,600 30,176,800 29,204,400 28,342,500 28,084,900 27,422,400 26,318,100 25,093,700 22,727,900 20,377,000 17,838,800 14,600,400 13,069,800 12,354,800 12,083,600 12,562,400
Pretax margin 2.93% 3.04% 3.38% 3.88% 4.38% 4.67% 5.15% 5.52% 6.12% 6.62% 6.77% 6.93% 6.52% 6.42% 6.20% 5.45% 4.96% 3.94% 3.18% 2.88%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,058,900K ÷ $36,158,900K
= 2.93%

The pretax margin of Lithia Motors Inc has shown a fluctuating trend over the specified period, starting at 2.88% in March 31, 2020, and reaching its peak at 6.93% in March 31, 2022. Thereafter, the pretax margin started to decline gradually, dropping to 2.93% by December 31, 2024. The overall pattern indicates an initial improvement in profitability followed by a period of relative stability and eventual decrease in pretax margin. It is important for the company to monitor this trend closely and implement strategies to sustain or enhance profitability levels in the future.