AutoNation Inc (AN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,131,500 | 5,265,300 | 4,952,600 | 3,566,400 | 3,523,000 |
| Revenue | US$ in thousands | 26,948,900 | 26,985,000 | 25,844,000 | 20,390,000 | 21,335,700 |
| Gross profit margin | 19.04% | 19.51% | 19.16% | 17.49% | 16.51% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,131,500K ÷ $26,948,900K
= 19.04%
Autonation Inc.'s gross profit margin has shown a generally positive trend over the past five years, increasing from 16.51% in 2019 to 19.04% in 2023. This indicates that the company has been able to effectively manage its cost of goods sold relative to its revenue.
The year-on-year variations in the gross profit margin reflect changes in the company's pricing strategy, cost control measures, and efficiency in managing production and distribution costs.
Despite a slight dip in 2020, the trend shows an overall improvement in profitability over the years, with the highest gross profit margin achieved in 2022 at 19.51%. This suggests that Autonation Inc. has been successful in maintaining a healthy balance between generating sales revenue and controlling direct costs associated with its core operations.
Overall, the consistent improvement in the gross profit margin signifies the company's ability to generate more profit from each dollar of sales, which is a positive indicator of its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023