Wabash National Corporation (WNC)
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 | -376,598 | 294,685 | 146,435 | 1,290 | -109,214 |
| Revenue | US$ in thousands | 1,946,740 | 2,536,500 | 2,502,130 | 1,803,270 | 1,481,890 |
| Pretax margin | -19.35% | 11.62% | 5.85% | 0.07% | -7.37% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-376,598K ÷ $1,946,740K
= -19.35%
The pretax margin is a key financial metric that indicates a company's profitability before taxes relative to its total revenue. Analyzing the trend in Wabash National Corporation's pretax margin from 2020 to 2024 provides insights into its operational efficiency and financial health.
In 2020, the company reported a negative pretax margin of -7.37%, indicating that its expenses exceeded its revenue before accounting for taxes. However, by the end of 2021, Wabash National Corporation managed to achieve a marginal improvement, with a pretax margin of 0.07%, albeit still close to breakeven.
The trend significantly improved in 2022, with a notable increase in the pretax margin to 5.85%, signaling enhanced operational efficiency and potentially better cost management within the company. This improving trend continued into 2023, where the pretax margin further increased to 11.62%, demonstrating substantial progress in profitability.
However, in 2024, there was a significant downturn as the pretax margin fell sharply to -19.35%, indicating a substantial decline in profitability and potential challenges or issues faced by Wabash National Corporation during that year.
In conclusion, although the company showed improvement in profitability from 2020 to 2023, the sharp decline in 2024 raises concerns about its financial performance and underscores the importance of monitoring and addressing factors that may impact profitability in the future.