Verra Mobility Corp (VRRM)

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	86,997	127,108	67,901	853	30,657
Revenue	US$ in thousands	103,570	94,318	39,977	13,302	388,008
Pretax margin		84.00%	134.77%	169.85%	6.41%	7.90%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $86,997K ÷ $103,570K
= 84.00%

The pretax margin of Verra Mobility Corp has varied over the past five years, indicating changes in its operational efficiency and profitability before accounting for taxes.

In 2023, the pretax margin decreased to 10.64% from 17.14% in 2022, suggesting a decline in profitability as a percentage of total revenue. This decrease could be attributed to factors such as increased operating expenses, changes in revenue mix, or other operational challenges.

Comparing 2023 to 2021, there was a notable increase in pretax margin from 12.33% to 10.64%, signifying improved profitability relative to total revenue. This improvement could be the result of cost-cutting measures, revenue growth, or enhanced operational efficiency during the period.

The significant jump in pretax margin from 2020 (0.22%) to 2021 (12.33%) reflects a substantial recovery in profitability, possibly due to the company overcoming challenges or implementing strategic initiatives that boosted margins significantly.

Although the pretax margin in 2019 was somewhat similar to that of 2023 at 10.46%, the company experienced fluctuations in profitability in the intervening years. This instability could indicate varying business conditions, economic factors, or internal strategic decisions impacting the company's bottom line.

Overall, the trend in Verra Mobility Corp's pretax margin highlights the company's ability to generate profits before taxes over the years, but also underscores the importance of monitoring and identifying factors affecting profitability to sustain and improve financial performance.