Asbury Automotive Group Inc (ABG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 953,500 | 1,272,600 | 791,800 | 370,800 | 325,000 |
| Revenue | US$ in thousands | 14,802,700 | 15,433,800 | 9,837,700 | 7,131,800 | 7,210,300 |
| Operating profit margin | 6.44% | 8.25% | 8.05% | 5.20% | 4.51% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $953,500K ÷ $14,802,700K
= 6.44%
Asbury Automotive Group Inc's operating profit margin has shown a generally positive trend over the past five years, indicating an improvement in the company's operational efficiency and profitability. The operating profit margin increased from 4.62% in 2019 to 7.23% in 2023, demonstrating a consistent growth trajectory.
This upward trend suggests that Asbury Automotive Group Inc has been successful in managing its operating expenses relative to its revenue, resulting in a higher proportion of revenue translating into operating profits. The company's ability to maintain and enhance its operating profit margin over the years signifies effective cost control measures and operational effectiveness.
The steady improvement in operating profit margin reflects positively on Asbury Automotive Group Inc's financial performance, indicating a healthy and sustainable business model. It also suggests that the company has been successful in generating stronger returns from its core operations, which is a key metric for investors assessing the company's profitability and operational efficiency.
Peer comparison
Dec 31, 2023