Lear Corporation (LEA)

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	753,300	461,400	511,600	252,400	899,700
Revenue	US$ in thousands	46,808,500	42,447,800	39,126,900	34,623,800	40,172,200
Pretax margin		1.61%	1.09%	1.31%	0.73%	2.24%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $753,300K ÷ $46,808,500K
= 1.61%

Lear Corp.'s pretax margin has displayed fluctuations over the past five years. In 2023, the pretax margin improved to 3.52% compared to 2.60% in 2022, indicating enhanced profitability before accounting for taxes. The upward trend suggests effective cost management and revenue growth strategies implemented by the company. However, it is important to note that the pretax margin was lower in 2023 compared to 2019 when it stood at 4.93%, signifying a dip in profitability over the long term. Further analysis of the company's operational efficiency, cost structure, and revenue generation capabilities may provide insights into the factors driving these fluctuations in pretax margins.