Lithia Motors Inc (LAD)

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	5,228,600	5,177,000	5,119,900	5,085,500	5,152,100	5,186,800	5,061,700	4,821,600	4,259,000	3,662,600	3,125,100	2,478,900	2,224,300	2,075,500	1,934,800	1,964,000	1,953,800	1,897,100	1,852,400	1,819,500
Revenue (ttm)	US$ in thousands	30,848,600	30,176,800	29,204,400	28,342,500	28,084,900	27,422,400	26,318,100	25,093,700	22,727,900	20,377,000	17,838,800	14,600,400	13,069,800	12,354,800	12,083,600	12,562,400	12,624,200	12,377,000	12,136,600	12,011,400
Gross profit margin		16.95%	17.16%	17.53%	17.94%	18.34%	18.91%	19.23%	19.21%	18.74%	17.97%	17.52%	16.98%	17.02%	16.80%	16.01%	15.63%	15.48%	15.33%	15.26%	15.15%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $5,228,600K ÷ $30,848,600K
= 16.95%

The gross profit margin of Lithia Motors, Inc. has shown a decreasing trend over the past eight quarters, declining from 19.14% in Q1 2022 to 16.84% in Q4 2023. This may indicate potential challenges in managing production costs or pricing strategies. The downward trend suggests that the company may be facing pressure on its profitability, requiring a closer examination of its cost structure and pricing mechanisms to maintain healthy margins in the future.