Group 1 Automotive Inc (GPI)

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	968,600	1,015,900	1,034,200	1,047,900	1,091,400	1,079,100	1,040,700	1,018,700	884,400	814,400	760,000	576,500	495,700	432,500	328,700	346,800	363,700	341,900	336,800	348,900
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
Operating profit margin		5.45%	5.85%	6.15%	6.38%	6.76%	6.92%	6.97%	7.03%	6.47%	6.22%	6.02%	5.22%	4.62%	3.96%	2.99%	2.92%	3.03%	2.90%	2.91%	3.03%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $968,600K ÷ $17,760,500K
= 5.45%

The operating profit margin for Group 1 Automotive, Inc. has exhibited a downward trend over the past eight quarters. Starting at 7.11% in Q1 2022, the margin has gradually decreased to 5.60% in Q4 2023. This decline may indicate challenges in managing operating expenses relative to sales revenue or potential pricing pressure in the automotive industry. It is essential for the company to closely monitor and address factors affecting its operating profit margin to ensure sustainable profitability in the long term.