Visteon Corp (VC)
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 | 238,000 | 169,000 | 72,000 | -28,000 | 94,000 |
| Revenue | US$ in thousands | 3,954,000 | 3,756,000 | 2,773,000 | 2,548,000 | 2,945,000 |
| Pretax margin | 6.02% | 4.50% | 2.60% | -1.10% | 3.19% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $238,000K ÷ $3,954,000K
= 6.02%
Visteon Corp.'s pretax margin has shown fluctuations over the past five years. In 2023, the pretax margin improved to 6.50%, which is a positive sign indicating that the company's profitability before taxes increased compared to the previous year. This improvement could be a result of better cost management, increased revenues, or a combination of both.
Looking back, in 2022 and 2021, the pretax margin was 4.66% and 2.92%, respectively, showing a gradual increase over the two years. This indicates that Visteon Corp. was able to enhance its profitability over this period.
In contrast, in 2020, the company faced a negative pretax margin of -0.78%, suggesting that it incurred losses before taxes, which could be due to various factors such as decreased sales, higher expenses, or one-time charges.
However, in 2019, Visteon Corp. reported a pretax margin of 3.60%, showing a positive profitability trend compared to 2020 but lower than the most recent year's performance.
Overall, the varying pretax margins indicate the fluctuating financial performance of Visteon Corp. over the past five years, and stakeholders should evaluate the underlying reasons driving these changes to assess the company's financial health accurately.
Peer comparison
Dec 31, 2023