AutoNation Inc (AN)

Operating 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
Operating income (ttm)	US$ in thousands	1,651,900	1,726,900	1,829,900	1,948,800	2,024,500	2,132,000	2,112,800	2,084,900	1,902,800	1,679,800	1,448,200	1,119,400	563,200	489,600	411,400	413,500	823,600	785,100	795,200	782,900
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
Operating profit margin		6.13%	6.42%	6.87%	7.32%	7.50%	7.93%	7.95%	7.81%	7.36%	6.71%	6.02%	5.18%	2.76%	2.43%	2.04%	1.97%	3.86%	3.70%	3.77%	3.70%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,651,900K ÷ $26,948,900K
= 6.13%

Autonation Inc.'s operating profit margin has shown a gradual decline over the past several quarters, starting at 7.56% in Q4 2022 and decreasing to 6.15% in Q4 2023. This downward trend suggests that the company's operating expenses may be increasing at a faster rate than its operating income, impacting its overall profitability. Despite this decrease, the operating profit margin has remained above 6% in each quarter, indicating that Autonation Inc. is still able to generate a reasonable level of profit from its core business operations. Management should closely monitor and potentially implement cost-control measures to improve the operating profit margin in the future.