KAR Auction Services Inc (KAR)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	746,800	722,800	726,700	759,200	777,500	761,800	744,900	722,900	685,100	740,500	779,200	859,100	951,700	929,700	971,500	903,200	902,900	975,100	1,002,200	1,120,000
Revenue (ttm)	US$ in thousands	1,751,500	1,687,800	1,655,700	1,640,800	1,645,100	1,626,600	1,603,300	1,570,600	1,519,400	1,696,000	1,838,200	2,039,400	2,251,600	2,231,800	2,290,200	2,123,800	2,187,700	2,329,400	2,437,700	2,737,800
Gross profit margin		42.64%	42.82%	43.89%	46.27%	47.26%	46.83%	46.46%	46.03%	45.09%	43.66%	42.39%	42.13%	42.27%	41.66%	42.42%	42.53%	41.27%	41.86%	41.11%	40.91%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $746,800K ÷ $1,751,500K
= 42.64%

The gross profit margin of KAR Auction Services Inc has shown fluctuations over the period covered by the data provided.

The gross profit margin increased steadily from March 31, 2020, to December 31, 2023, reaching its peak at 47.26% on December 31, 2023. This upward trend indicates that the company was effectively managing its costs and generating a higher margin of profit on its sales during this period.

However, starting from March 31, 2024, the gross profit margin began to decline. Notably, there was a significant drop in the gross profit margin to 42.64% on December 31, 2024, compared to its previous levels. This decrease suggests that there may have been an increase in costs relative to revenue, impacting the company's profitability.

Overall, the analysis indicates that KAR Auction Services Inc experienced a generally positive trend in its gross profit margin performance until the end of 2023, before facing a decline in the subsequent period. This trend highlights the importance of closely monitoring cost management and revenue generation strategies to ensure sustained profitability for the company.