TKO Group Holdings, Inc. (TKO)
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 | 34,350 | 207,435 | 403,549 | 289,394 | 195,220 |
| Revenue | US$ in thousands | 2,804,340 | 1,674,970 | 1,140,150 | 1,031,940 | 891,154 |
| Pretax margin | 1.22% | 12.38% | 35.39% | 28.04% | 21.91% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $34,350K ÷ $2,804,340K
= 1.22%
TKO Group Holdings, Inc.'s pretax margin has experienced fluctuations over the years as per the data provided. In 2020, the pretax margin stood at 21.91%, indicating that the company retained roughly 21.91% of its revenue before taxes. Subsequently, there was a notable improvement to 28.04% in 2021 and a further increase to 35.39% in 2022, suggesting enhanced operational efficiency and profitability.
However, in 2023, the pretax margin dropped significantly to 12.38%, signaling a potential decline in profitability. This decline could be attributed to various factors such as increased operating expenses or a decrease in revenue growth.
Moreover, in 2024, the pretax margin plummeted to just 1.22%, indicating a substantial decrease in the company's ability to generate profits before accounting for taxes. This sharp decline could be a cause for concern and may warrant further investigation into the company's financial health and operational performance.
Peer comparison
Dec 31, 2024