Xerox Corp (XRX)
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 | -1,216,000 | -28,000 | -325,000 | -472,000 | 256,000 |
| Revenue | US$ in thousands | 6,524,000 | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 |
| Pretax margin | -18.64% | -0.40% | -4.48% | -6.47% | 3.52% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-1,216,000K ÷ $6,524,000K
= -18.64%
Based on the data provided, Xerox Corp's pretax margin has been fluctuating over the past five years. In December 2020, the pretax margin was 3.52%, indicating that the company earned $3.52 in pretax profit for every $100 in revenue. However, there was a significant decline in profitability in December 2021, with a pretax margin of -6.47%, which means the company incurred a loss before taxes.
Subsequently, in December 2022, the pretax margin slightly improved but remained negative at -4.48%. The trend continued in December 2023, with a further improvement in the pretax margin to -0.40%, indicating a narrower loss. However, in December 2024, the pretax margin deteriorated significantly to -18.64%, signaling a substantial decline in profitability.
Overall, Xerox Corp's pretax margin has been volatile and predominantly negative, suggesting challenges in generating profits before accounting for taxes and operating expenses. Further analysis of the company's cost structure, revenue streams, and operational efficiency may be necessary to understand the factors driving these fluctuations in pretax margin.
Peer comparison
Dec 31, 2024