Zebra Technologies Corporation (ZBRA)

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 635,000 334,000 544,000 968,000 560,000
Revenue US$ in thousands 4,986,000 4,582,000 5,778,000 5,619,000 4,359,000
Pretax margin 12.74% 7.29% 9.42% 17.23% 12.85%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $635,000K ÷ $4,986,000K
= 12.74%

The pretax margin of Zebra Technologies Corporation has shown fluctuations over the past five years. In December 2020, the pretax margin was 12.85%, indicating that the company was able to generate a profit before taxes equivalent to 12.85% of its total revenue.

The pretax margin then improved in the following year, reaching 17.23% by December 2021. This increase suggests that the company's operating efficiency and cost management may have improved, leading to a higher percentage of profits before taxes.

However, the pretax margin experienced a decline in December 2022, dropping to 9.42%. This decrease could be attributed to various factors such as increased operating expenses or a decrease in revenue relative to costs.

The trend continued downwards in December 2023, with the pretax margin decreasing further to 7.29%. This decline indicates potential challenges in maintaining profitability levels or controlling costs during that period.

By December 2024, there was a slight recovery in the pretax margin, rising to 12.74%. This improvement suggests that the company may have implemented strategies to enhance profitability or mitigate operating challenges, resulting in a higher pretax margin.

Overall, Zebra Technologies Corporation has demonstrated varying levels of pretax margin performance over the analyzed period. Investors and stakeholders may want to closely monitor the company's financial health and management of costs to ensure sustainable profitability in the future.