KAR Auction Services Inc (KAR)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 832,200 | 777,500 | 685,100 | 951,700 | 902,900 |
| Revenue | US$ in thousands | 1,788,500 | 1,645,100 | 1,519,400 | 2,251,600 | 2,187,700 |
| Gross profit margin | 46.53% | 47.26% | 45.09% | 42.27% | 41.27% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $832,200K ÷ $1,788,500K
= 46.53%
Based on the provided data, KAR Auction Services Inc's gross profit margin has shown a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024.
The gross profit margin increased from 41.27% in December 31, 2020, to 46.53% by December 31, 2024. This indicates that the company has been able to improve its ability to generate profits from sales after deducting the cost of goods sold.
The highest gross profit margin was observed on December 31, 2023, at 47.26%, showing a strong performance in that particular year. While there was a slight decrease in the margin in 2024 compared to the previous year, the overall trend remains positive.
This increase in the gross profit margin suggests that KAR Auction Services Inc has been effectively managing its production costs and pricing strategies, which has positively impacted its profitability. The company may have implemented cost-saving measures, improved operational efficiency, or successfully increased selling prices, leading to better profitability in the given period.
Peer comparison
Dec 31, 2024