Group 1 Automotive Inc (GPI)

Net 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
Net income (ttm)	US$ in thousands	601,500	649,700	681,500	706,900	751,400	681,600	658,000	653,100	552,100	565,100	519,400	358,600	286,500	234,500	146,100	165,100	173,900	156,500	153,300	160,600
Revenue (ttm)	US$ in thousands	17,760,500	17,358,100	16,826,700	16,421,000	16,137,700	15,590,700	14,935,700	14,495,500	13,664,700	13,097,100	12,626,600	11,044,500	10,721,000	10,910,400	10,987,000	11,869,400	11,991,360	11,788,770	11,560,390	11,497,440
Net profit margin		3.39%	3.74%	4.05%	4.30%	4.66%	4.37%	4.41%	4.51%	4.04%	4.31%	4.11%	3.25%	2.67%	2.15%	1.33%	1.39%	1.45%	1.33%	1.33%	1.40%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $601,500K ÷ $17,760,500K
= 3.39%

Group 1 Automotive, Inc.'s net profit margin has shown some fluctuations over the past eight quarters. The trend indicates a gradual decrease from Q1 2022 to Q4 2023. Starting at 4.41% in Q1 2022, the net profit margin experienced a decline to 3.28% by Q4 2023. This trend suggests a potential decrease in profitability over this period.

The company's net profit margin peaked at 4.50% in Q4 2022 but has been on a downward trajectory since then. The margins have been hovering around the range of 3.28% to 4.50% during this period, indicating relative consistency despite the overall decline.

It is essential for Group 1 Automotive to closely monitor and analyze the factors contributing to this decline in net profit margin to identify opportunities for improvement in operational efficiency, cost management, and revenue generation. Furthermore, the company may need to assess its pricing strategies, cost structures, and overall financial performance to enhance its profitability in the future.