Group 1 Automotive Inc (GPI)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 909,100 968,600 1,091,400 884,400 486,100
Revenue US$ in thousands 19,934,300 17,873,700 16,222,100 13,481,900 10,851,800
Operating profit margin 4.56% 5.42% 6.73% 6.56% 4.48%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $909,100K ÷ $19,934,300K
= 4.56%

Group 1 Automotive Inc's operating profit margin has shown fluctuations over the past five years. As of December 31, 2020, the operating profit margin was 4.48%, which improved to 6.56% by December 31, 2021. The margin continued to increase to 6.73% by the end of 2022, indicating improved operational efficiency.

However, there was a slight dip in the operating profit margin to 5.42% by December 31, 2023, followed by a further decrease to 4.56% as of December 31, 2024. This decline in the margin suggests potential challenges in controlling operating expenses or fluctuations in revenue generation.

Overall, while there have been periods of improvement in operating profit margin for Group 1 Automotive Inc, the recent downward trend highlights the importance of closely monitoring operational performance to sustain profitability in the long term.