Avis Budget Group Inc (CAR)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,775,000 | 4,766,000 | 10,764,000 | 7,803,000 | 3,716,000 |
| Revenue | US$ in thousands | 11,789,000 | 12,008,000 | 11,994,000 | 9,313,000 | 5,402,000 |
| Gross profit margin | 48.99% | 39.69% | 89.74% | 83.79% | 68.79% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,775,000K ÷ $11,789,000K
= 48.99%
Avis Budget Group Inc's gross profit margin has shown fluctuations over the years based on the provided data. In December 2020, the gross profit margin was 68.79%, indicating that the company was generating about 68.79 cents of gross profit for every dollar of revenue. The margin increased significantly to 83.79% by December 2021, signifying improved profitability and operational efficiency.
By December 2022, the gross profit margin continued to rise to 89.74%, reaching its peak during this period. This substantial increase suggested that the company was effectively managing its cost of goods sold relative to its revenue, resulting in higher gross profit.
However, there was a notable decline in the gross profit margin to 39.69% by December 2023, indicating a potential decrease in profitability and efficiency in managing production or service costs. In December 2024, the margin recovered to 48.99%, but it remained below the levels seen in the previous years.
It is essential for Avis Budget Group Inc to assess the factors influencing these fluctuations in the gross profit margin and take appropriate measures to maintain or improve profitability levels in the future. Monitoring costs, pricing strategies, and operational efficiency can help the company sustain a healthy gross profit margin over time.
Peer comparison
Dec 31, 2024