Group 1 Automotive Inc (GPI)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	498,100	601,600	751,500	552,100	286,500
Revenue	US$ in thousands	19,934,300	17,873,700	16,222,100	13,481,900	10,851,800
Net profit margin		2.50%	3.37%	4.63%	4.10%	2.64%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $498,100K ÷ $19,934,300K
= 2.50%

The net profit margin of Group 1 Automotive Inc has shown a fluctuating trend over the years based on the provided data. In 2020, the net profit margin was recorded at 2.64%, indicating that the company retained approximately 2.64% of its revenue as profit after covering all expenses.

There was a significant improvement in 2021, with the net profit margin increasing to 4.10%, suggesting better efficiency in cost management or increased revenue generation compared to the previous year. This positive trend continued into 2022, as the net profit margin further improved to 4.63%, reflecting continued profitability and potential business growth.

However, in 2023, the net profit margin experienced a decrease to 3.37%, which may signal challenges such as rising expenses or a slowdown in revenue growth impacting profitability. This decline was followed by a further decrease in 2024, with the net profit margin dropping to 2.50%, indicating a potential strain on the company's profitability.

Overall, while there have been fluctuations in Group 1 Automotive Inc's net profit margin over the years, it is essential for the company to closely monitor and manage its expenses and revenue generation strategies to ensure sustainable profitability and financial health in the future.