Penske Automotive Group Inc (PAG)

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	1,414,100	1,853,000	1,604,100	706,300	592,500
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Pretax margin		4.80%	6.67%	6.27%	3.46%	2.56%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,414,100K ÷ $29,451,800K
= 4.80%

The pretax margin of Penske Automotive Group Inc has fluctuated over the past five years. In 2023, the pretax margin decreased to 4.81% from 6.68% in 2022. This downward trend contrasts with the increase seen from 2020 to 2022, where the pretax margin rose from 3.46% to 6.68%. Despite the recent decline, the pretax margin in 2023 remains higher than the levels recorded in 2020 and 2019, which were 3.46% and 2.55%, respectively. This suggests that the company's profitability before taxes has generally improved over the five-year period, with some variability in performance from year to year. Further analysis of the underlying factors influencing the pretax margin in each period would provide additional insights into the company's financial performance.