Edwyn
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | $5,402 | $9,313 | $11,994 | $12,008 | $11,789 |
| Gross Profit | -$956 | $1,708 | $3,636 | $1,914 | -$2,627 |
| Operating Income | N/A | N/A | N/A | N/A | N/A |
| Net Income | -$684 | $1,285 | $2,764 | $1,632 | -$1,821 |
Over the five-year period, AVIS BUDGET GROUP, INC. experienced notable volatility in its income statement metrics. Revenues surged from US$5.40 billion in 2020 to US$9.31 billion in 2021—a growth of approximately 72%—before steadily increasing to peak at around US$12.00 billion in 2023, and then declining slightly to US$11.79 billion in 2024. This rebound from 2020’s lower revenues illustrates a strong recovery phase likely associated with the easing of pandemic-related disruptions. However, the rapid revenue expansion in 2021 and 2022 contrasts sharply with the later slight decline, raising questions about the sustainability of this growth trajectory amid cyclical market conditions. Gross profit performance shows deeper concerns regarding cost management and pricing dynamics. The company reported a negative gross profit (–US$0.96 billion) in 2020 that reversed dramatically to US$1.71 billion in 2021 and climbed to US$3.64 billion in 2022. Yet, a steep decline to US$1.91 billion in 2023 followed by a swing back into negative territory (–US$2.63 billion) in 2024 indicates a significant year-over-year deterioration exceeding 20% between key periods. Net income mirrored this inconsistency: moving from a loss of US$0.68 billion in 2020 to profits of US$1.29 billion and US$2.76 billion in 2021 and 2022 respectively, then falling to US$1.63 billion in 2023 and reverting to a loss of US$1.82 billion in 2024. With operating income reported as zero, these trends underscore potential challenges in cost control or other operating inefficiencies. Overall, while the earlier recovery signaled promising turnaround prospects, the subsequent declines in gross profit and net income suggest that the company may be struggling to convert revenue growth into sustainable profitability, warranting closer scrutiny of its operational strategy and market conditions in the competitive car rental industry.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.