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Zip Co (ASX:ZIP) Pretax Margin % : 20.35% (As of Dec. 2023)


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What is Zip Co Pretax Margin %?

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Zip Co's Pre-Tax Income for the six months ended in Dec. 2023 was A$87.5 Mil. Zip Co's Revenue for the six months ended in Dec. 2023 was A$430.0 Mil. Therefore, Zip Co's pretax margin for the quarter that ended in Dec. 2023 was 20.35%.

The historical rank and industry rank for Zip Co's Pretax Margin % or its related term are showing as below:

ASX:ZIP' s Pretax Margin % Range Over the Past 10 Years
Min: -182.34   Med: -91.85   Max: -6.32
Current: -6.32


ASX:ZIP's Pretax Margin % is ranked worse than
80.66% of 517 companies
in the Credit Services industry
Industry Median: 19.8 vs ASX:ZIP: -6.32

Zip Co Pretax Margin % Historical Data

The historical data trend for Zip Co's Pretax Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zip Co Pretax Margin % Chart

Zip Co Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.43 -13.11 -182.34 -178.29 -53.71

Zip Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Pretax Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -71.08 -279.65 -67.24 -39.83 20.35

Competitive Comparison of Zip Co's Pretax Margin %

For the Credit Services subindustry, Zip Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zip Co's Pretax Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Zip Co's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Zip Co's Pretax Margin % falls into.



Zip Co Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Zip Co's Pretax Margin for the fiscal year that ended in Jun. 2023 is calculated as

Pretax Margin=Pre-Tax Income (A: Jun. 2023 )/Revenue (A: Jun. 2023 )
=-372.291/693.207
=-53.71 %

Zip Co's Pretax Margin for the quarter that ended in Dec. 2023 is calculated as

Pretax Margin=Pre-Tax Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=87.487/429.999
=20.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Zip Co  (ASX:ZIP) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.


Zip Co Pretax Margin % Related Terms

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Zip Co (ASX:ZIP) Business Description

Traded in Other Exchanges
Address
126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000
Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.