Gentherm Inc (THRM)
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 | 54,954 | 38,382 | 113,852 | 81,556 | 47,791 |
| Revenue | US$ in thousands | 1,447,650 | 1,192,770 | 1,044,070 | 902,575 | 968,913 |
| Pretax margin | 3.80% | 3.22% | 10.90% | 9.04% | 4.93% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $54,954K ÷ $1,447,650K
= 3.80%
Gentherm Inc's pretax margin has shown variability over the past five years. In 2023, the pretax margin was 3.74%, indicating that out of every dollar generated in revenue, the company retained $0.0374 as pretax profit. This represented a slight increase from the previous year's margin of 3.19%. However, the pretax margin in 2023 was significantly lower compared to the margins observed in 2021 (10.88%), 2020 (8.93%), and 2019 (6.09%).
The declining trend in pretax margin from 2021 to 2023 suggests that Gentherm Inc may be experiencing challenges in managing its operating expenses and maintaining profitability levels. Further examination of the company's cost structure and revenue-generating activities would be necessary to understand the factors driving these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023