Papa John's International Inc (PZZA)

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 114,126 103,673 83,769 150,948 75,362
Revenue US$ in thousands 2,059,390 2,135,710 2,102,100 2,068,420 1,813,230
Pretax margin 5.54% 4.85% 3.99% 7.30% 4.16%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $114,126K ÷ $2,059,390K
= 5.54%

The pretax margin of Papa John's International Inc has shown a mixed performance over the years, ranging from 3.99% in December 2022 to 7.30% in December 2021. Despite a slight decrease to 4.16% in December 2020, there has been a general upward trend in the pretax margin, reaching 5.54% by December 2024. This indicates that the company has been able to improve its profitability before taxes in recent years, albeit with some fluctuations. It is essential for Papa John's to sustain this positive momentum in order to effectively manage its operating expenses and generate higher earnings relative to its revenue.