Callaway Golf Company (MODG)
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 | 34,800 | 141,900 | 350,600 | -127,500 | 95,948 |
| Revenue | US$ in thousands | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 | 1,655,710 |
| Pretax margin | 0.85% | 3.66% | 11.50% | -8.22% | 5.79% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $34,800K ÷ $4,100,200K
= 0.85%
The pretax margin of Topgolf Callaway Brands Corp has shown significant fluctuations over the past five years. In 2023, the pretax margin was 0.81%, representing a decrease from the previous year's margin of 3.55%. This decline indicates a decrease in the company's ability to generate profits before taxes relative to its total revenue.
Comparing to 2021, where the pretax margin was 11.19%, the pretax margin in 2023 has decreased significantly. The company was more efficient in generating profits before taxes in 2021 compared to 2023, indicating potential challenges in cost management or revenue generation in the most recent year.
The pretax margin was negative in 2020 at -8.02%, suggesting the company incurred losses before taxes during that period. However, there was a recovery in 2019, with a pretax margin of 5.63%, indicating an improvement in profitability compared to the challenging year of 2020.
Overall, the declining trend in pretax margin from 2021 to 2023 raises concerns about the company's profitability and efficiency in managing costs and generating revenue. Further analysis into the factors driving these fluctuations is necessary to understand the company's financial performance and prospects.
Peer comparison
Dec 31, 2023