Callaway Golf Company (MODG)
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 | -1,473,200 | 34,800 | 141,900 | 350,600 | -127,500 |
| Revenue | US$ in thousands | 4,259,500 | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 |
| Pretax margin | -34.59% | 0.85% | 3.66% | 11.50% | -8.22% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-1,473,200K ÷ $4,259,500K
= -34.59%
The pretax margin, a key profitability ratio, of Callaway Golf Company has shown varied performance over the years. In December 2020, the pretax margin was notably negative at -8.22%, indicating that the company's pre-tax earnings were insufficient to cover operating expenses. By December 2021, the pretax margin improved significantly to 11.50%, reflecting better operational efficiency and potentially higher revenues. However, in December 2022, the pretax margin decreased to 3.66%, suggesting a slight decline in profitability compared to the previous year. Subsequently, in December 2023, the pretax margin further decreased to 0.85%, indicating tighter margins and potentially increased expenses relative to earnings. Finally, by December 2024, the pretax margin plummeted to -34.59%, signaling a significant decrease in profitability, possibly due to increased costs or declining revenues. Overall, the trend in pretax margin for Callaway Golf Company shows fluctuations in profitability over the years, requiring further analysis to understand the underlying factors driving these changes.
Peer comparison
Dec 31, 2024