KAR Auction Services Inc (KAR)
Gross 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 84,300 | 79,400 | 60,800 | 276,700 | 238,600 | 252,200 | 265,900 | 329,700 | 388,800 | 361,900 | 406,800 | 336,600 | 310,800 | 358,000 | 353,800 | 867,900 | 1,635,500 | 2,276,200 | 2,895,000 | 3,064,400 |
| Revenue (ttm) | US$ in thousands | 1,645,100 | 1,626,600 | 1,603,300 | 1,570,600 | 1,519,400 | 1,504,300 | 1,458,400 | 1,450,200 | 1,450,600 | 1,622,500 | 1,869,000 | 1,912,000 | 2,187,700 | 2,329,400 | 2,437,700 | 2,737,800 | 2,781,900 | 2,704,400 | 2,614,900 | 2,519,200 |
| Gross profit margin | 5.12% | 4.88% | 3.79% | 17.62% | 15.70% | 16.77% | 18.23% | 22.73% | 26.80% | 22.31% | 21.77% | 17.60% | 14.21% | 15.37% | 14.51% | 31.70% | 58.79% | 84.17% | 110.71% | 121.64% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $84,300K ÷ $1,645,100K
= 5.12%
Openlane Inc.'s gross profit margin has shown a positive trend over the past few quarters. The company's gross profit margin has steadily increased from 42.13% in Q1 2022 to 47.26% in Q4 2023. This indicates that Openlane Inc. has been effectively managing its production costs and generating higher revenues relative to its cost of goods sold.
The consistent improvement in gross profit margin reflects the company's ability to maintain a healthy balance between pricing and costs. This may be attributed to efficient operations, effective pricing strategies, or economies of scale resulting in better cost control. It suggests that Openlane Inc. is effectively converting its sales into profits before accounting for other operating expenses.
Overall, the increasing trend in gross profit margin is a positive indicator of Openlane Inc.'s profitability and operational efficiency. It is essential for the company to continue monitoring and optimizing its cost structure to sustain and potentially improve its gross profit margin in the future.
Peer comparison
Dec 31, 2023