Ziff Davis Inc (ZD)
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 | 104,417 | 65,645 | 121,714 | 482,515 | 189,018 |
| Revenue | US$ in thousands | 1,406,210 | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 |
| Pretax margin | 7.43% | 4.81% | 8.75% | 34.06% | 16.31% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $104,417K ÷ $1,406,210K
= 7.43%
The pretax margin, a key profitability ratio, reflects Ziff Davis Inc's ability to generate earnings before taxes relative to its total revenue. Analyzing the data provided, we observe fluctuations in Ziff Davis Inc's pretax margin over the years.
In December 2020, the pretax margin stood at 16.31%, indicating that for every dollar of revenue generated, the company retained approximately 16.31 cents as earnings before taxes. This figure notably increased to 34.06% by December 2021, suggesting a significant improvement in profitability and operational efficiency.
However, there was a substantial decline in pretax margin to 8.75% by December 2022, signifying a reduction in the company's ability to maintain profitability levels. Further, by December 2023, the pretax margin fell to 4.81%, indicating a continued decrease in earnings relative to revenue.
Despite these declines, there was a slight recovery in December 2024, with the pretax margin rising to 7.43%. It is imperative for Ziff Davis Inc to closely monitor and address the factors contributing to these fluctuations in pretax margin to ensure sustained profitability and financial health in the future.