AutoNation Inc (AN)

Net profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,021,100	1,091,300	1,200,200	1,304,000	1,377,400	1,478,100	1,487,200	1,495,700	1,373,000	1,137,400	958,300	853,300	381,600	387,800	304,700	125,700	450,000	385,000	397,500	394,300
Revenue (ttm)	US$ in thousands	26,948,900	26,878,500	26,651,800	26,630,900	26,985,000	26,870,300	26,583,800	26,693,000	25,844,000	25,046,800	24,072,200	21,626,800	20,390,000	20,153,800	20,210,100	21,020,900	21,335,700	21,198,500	21,086,500	21,134,700
Net profit margin		3.79%	4.06%	4.50%	4.90%	5.10%	5.50%	5.59%	5.60%	5.31%	4.54%	3.98%	3.95%	1.87%	1.92%	1.51%	0.60%	2.11%	1.82%	1.89%	1.87%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,021,100K ÷ $26,948,900K
= 3.79%

The net profit margin of Autonation Inc. has shown a gradual decline over the past eight quarters, starting at 5.60% in Q1 2022 and reaching 3.79% in Q4 2023. This decrease indicates that the company is generating less profit for every dollar of revenue it earns. Factors contributing to this trend could include increasing expenses, pricing pressures, or changes in the sales mix. It is important for Autonation Inc. to closely monitor and address the underlying causes of this decline to ensure long-term profitability and sustainability.