Polaris Industries Inc (PII)
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 | 620,500 | 605,100 | 626,000 | 214,700 | 407,900 |
| Revenue | US$ in thousands | 8,809,400 | 8,517,300 | 8,117,900 | 6,963,800 | 6,704,930 |
| Pretax margin | 7.04% | 7.10% | 7.71% | 3.08% | 6.08% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $620,500K ÷ $8,809,400K
= 7.04%
Pretax margin, a key profitability ratio, measures the percentage of each dollar of revenue that represents pre-tax profit. For Polaris Inc, the pretax margin has fluctuated over the past five years. In 2023, the pretax margin was 6.94%, representing a decrease from 8.86% in 2022 and a slight increase from 7.63% in 2021. The pretax margin in 2020 was notably lower at 2.01%, but improved to 6.01% in 2019.
The downward trend from 2022 to 2023 may indicate a potential decrease in operational efficiency or an increase in costs relative to revenue. Conversely, the improvement from 2020 to 2021 and then 2023 suggests a possible effort to enhance profitability through cost management or revenue growth.
Overall, further analysis of the company's cost structure, revenue streams, and efficiency measures would be beneficial to understand the factors influencing Polaris Inc's pretax margin performance over the years.