Lithia Motors Inc (LAD)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	5,228,900	5,152,400	4,259,000	2,224,300	1,953,800
Revenue	US$ in thousands	30,878,400	28,126,000	22,726,200	13,069,400	12,624,200
Gross profit margin		16.93%	18.32%	18.74%	17.02%	15.48%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $5,228,900K ÷ $30,878,400K
= 16.93%

Lithia Motors, Inc.'s gross profit margin has experienced fluctuations over the past five years. In 2023, the gross profit margin decreased to 16.84% from 18.28% in 2022, indicating a decline in the company's ability to generate profits from its core operations. This decrease follows a slight dip from 18.65% in 2021. The margin in 2020 was 16.96%, showing a similar level to the most recent year. In 2019, the gross profit margin was 15.42%, lower than the subsequent years.

Overall, the trend in the gross profit margin suggests some volatility in the company's ability to efficiently manage its cost of goods sold and generate revenue. Further analysis of cost structures and revenue streams may be necessary to pinpoint the factors contributing to these fluctuations and identify opportunities for improvement in operational efficiency and profitability.