Penske Automotive Group Inc (PAG)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,414,100	1,553,100	1,663,400	1,762,600	1,853,000	1,879,100	1,888,500	1,853,100	1,604,100	1,446,700	1,282,200	881,500	706,300	583,800	431,700	529,400	592,500	580,500	579,200	595,500
Revenue (ttm)	US$ in thousands	29,451,800	29,195,100	28,674,800	28,137,700	27,795,800	27,098,900	26,694,800	26,777,500	25,577,100	25,052,000	24,527,000	21,190,400	20,425,800	20,532,600	20,522,100	22,620,300	23,169,200	22,727,100	22,418,100	22,602,600
Pretax margin		4.80%	5.32%	5.80%	6.26%	6.67%	6.93%	7.07%	6.92%	6.27%	5.77%	5.23%	4.16%	3.46%	2.84%	2.10%	2.34%	2.56%	2.55%	2.58%	2.63%

December 31, 2023 calculation

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

Penske Automotive Group Inc's pretax margin has exhibited a gradual decline over the eight quarters under review. Starting at 6.94% in Q1 2022, the margin peaked at 7.10% in Q2 2022 before descending consistently to 4.81% in Q4 2023. This downward trend suggests a potential decrease in the company's profitability before accounting for taxes. Factors contributing to this decline may include rising operating costs, increased competition, or changes in the overall economic environment impacting the company's financial performance. Further analysis is advised to understand the underlying reasons behind this trend and explore potential strategies to improve the pretax margin going forward.