Lear Corporation (LEA)
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 | 732,900 | 777,200 | 509,300 | 583,500 | 299,300 |
| Revenue | US$ in thousands | 23,306,000 | 23,466,900 | 20,891,500 | 19,263,100 | 17,045,500 |
| Pretax margin | 3.14% | 3.31% | 2.44% | 3.03% | 1.76% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $732,900K ÷ $23,306,000K
= 3.14%
Lear Corporation's pretax margin has exhibited a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024.
The pretax margin, representing the proportion of each dollar of revenue that translates into pre-tax profit, increased from 1.76% in 2020 to 3.03% in 2021, signaling an improvement in the company's ability to generate profits before tax expenses.
Subsequently, in 2022, the pretax margin decreased to 2.44%, indicating a slight decline in profitability compared to the previous year. However, the trend reversed in 2023, with the pretax margin rising to 3.31%, reflecting an increase in profitability and the company's efficiency in managing pre-tax earnings.
In the most recent year, 2024, the pretax margin settled at 3.14%, showcasing a relatively stable performance compared to the preceding year.
Overall, Lear Corporation's pretax margin has shown variations over the period under review, with both improvements and declines observed. It is essential for the company to continue monitoring and managing its pre-tax profitability effectively to ensure sustainable financial performance in the future.
Peer comparison
Dec 31, 2024