Ziff Davis Inc (ZD)
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 | 65,645 | 121,714 | 482,515 | 189,018 | 232,566 |
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Pretax margin | 4.81% | 8.75% | 34.06% | 16.31% | 22.14% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $65,645K ÷ $1,364,030K
= 4.81%
The pretax margin of Ziff Davis Inc has exhibited variability over the past five years. The trend shows a decrease from 27.33% in 2021 to 4.81% in 2023. This decrease indicates a reduction in the company's ability to generate profit before tax for each dollar of revenue. The significant drop in pretax margin from 2021 to 2023 may raise concerns about the company's cost management, revenue generation, or efficiency in controlling expenses. Further investigation into the specific factors contributing to this decline would be necessary to determine the underlying causes and potential strategies for improvement.