AutoNation Inc (AN)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,651,900 | 2,024,500 | 1,902,800 | 563,200 | 823,600 |
| Revenue | US$ in thousands | 26,948,900 | 26,985,000 | 25,844,000 | 20,390,000 | 21,335,700 |
| Operating profit margin | 6.13% | 7.50% | 7.36% | 2.76% | 3.86% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,651,900K ÷ $26,948,900K
= 6.13%
Autonation Inc.'s operating profit margin has shown fluctuation over the past five years. In 2023, the operating profit margin decreased to 6.15% from 7.56% in 2022, marking a decline in profitability. However, in 2022, the company experienced an improvement in operating profit margin compared to 2021 where it stood at 7.29%.
This indicates that Autonation has shown some volatility in its ability to generate profits from its core business operations. The increase in 2022 can be seen as a positive trend, but the subsequent decrease in 2023 raises concerns about the company's profitability management. The company should focus on strategies to improve efficiency and control costs to maintain or increase its operating profit margin in the future.
Peer comparison
Dec 31, 2023