AutoNation Inc (AN)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,305,500 | 1,651,900 | 2,024,500 | 1,902,800 | 1,083,400 |
| Revenue | US$ in thousands | 26,765,400 | 26,948,900 | 26,985,000 | 25,844,000 | 20,390,000 |
| Operating profit margin | 4.88% | 6.13% | 7.50% | 7.36% | 5.31% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,305,500K ÷ $26,765,400K
= 4.88%
AutoNation Inc's operating profit margin has shown variability over the five-year period from 2020 to 2024. In 2020, the operating profit margin was 5.31%, which increased to 7.36% by the end of 2021 and further to 7.50% by the end of 2022. However, there was a decrease in the operating profit margin to 6.13% by the end of 2023 and a further decline to 4.88% by the end of 2024.
The fluctuation in the operating profit margin indicates changes in the company's efficiency in generating profits from its core operations. The increasing trend from 2020 to 2022 suggests improved operational performance and cost management. However, the decline in the operating profit margin in 2023 and 2024 may indicate challenges such as increased operating expenses relative to revenue or pricing pressures.
Overall, AutoNation Inc should closely monitor and analyze the factors impacting its operating profit margin to make informed strategic decisions and enhance profitability in the future.
Peer comparison
Dec 31, 2024