LKQ Corporation (LKQ)
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 | 958,000 | 1,235,000 | 1,518,000 | 1,399,130 | 884,995 |
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Pretax margin | 6.67% | 8.91% | 11.86% | 10.69% | 7.61% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $958,000K ÷ $14,355,000K
= 6.67%
Based on the provided data, LKQ Corporation's pretax margin has shown some fluctuations over the years. The pretax margin increased from 7.61% in December 2020 to 10.69% in December 2021, indicating improved profitability before considering taxes. The trend continued positively, reaching 11.86% by December 2022, showing the company's ability to effectively control costs and generate higher earnings relative to its revenue.
However, in December 2023, the pretax margin declined to 8.91%, which may raise concerns about the company's cost management or revenue generation during that period. Furthermore, by December 2024, the pretax margin dropped further to 6.67%, suggesting a potential decrease in profitability and efficiency.
Overall, the fluctuations in LKQ Corporation's pretax margin over the years indicate varying levels of financial performance and operational effectiveness. It is essential for stakeholders to closely monitor these changes and understand the underlying factors driving them to make informed decisions about the company's financial health and future prospects.