LKQ Corporation (LKQ)
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 | 1,244,000 | 1,534,000 | 1,422,000 | 888,000 | 756,590 |
| Revenue | US$ in thousands | 13,866,000 | 12,794,000 | 13,089,000 | 11,629,000 | 12,506,100 |
| Pretax margin | 8.97% | 11.99% | 10.86% | 7.64% | 6.05% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,244,000K ÷ $13,866,000K
= 8.97%
The pretax margin of LKQ Corp has shown fluctuations over the past five years. In 2023, the pretax margin decreased to 9.01% from 11.95% in 2022. This decline suggests that the company's profitability before taxes decreased in 2023 compared to the previous year. However, the pretax margin in 2023 remained higher than the levels seen in 2020 and 2019, indicating a general improvement in profitability over the longer term. It is essential for the company to monitor and manage its cost structure and revenue generation strategies to ensure sustainable profitability in the future.