Leidos Holdings Inc (LDOS)
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 | 394,000 | 878,000 | 961,000 | 780,000 | 863,000 |
| Revenue | US$ in thousands | 15,438,000 | 14,396,000 | 13,737,000 | 12,297,000 | 11,094,000 |
| Pretax margin | 2.55% | 6.10% | 7.00% | 6.34% | 7.78% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $394,000K ÷ $15,438,000K
= 2.55%
The pretax margin of Leidos Holdings Inc has shown a decreasing trend over the past five years, declining from 7.78% in 2019 to 2.55% in 2023. This indicates that the company's profitability before taxes has been diminishing over this period. The drop in pretax margin could be a concern for investors as it suggests that the company's cost structure or operating efficiencies may not be optimal, leading to lower profit margins. It would be important for Leidos Holdings Inc to closely evaluate its cost management strategies and operational performance to reverse this negative trend and enhance its profitability.
Peer comparison
Dec 31, 2023