Lithia Motors Inc (LAD)

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	5,561,000	5,450,200	5,391,100	5,352,300	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
Revenue (ttm)	US$ in thousands	36,158,900	34,572,100	33,569,600	32,405,400	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
Gross profit margin		15.38%	15.76%	16.06%	16.52%	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%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $5,561,000K ÷ $36,158,900K
= 15.38%

The gross profit margin of Lithia Motors Inc has shown a generally increasing trend from March 31, 2020, to June 30, 2022, reaching its peak at 19.23%. Subsequently, there was a slight decline in the margin recorded until December 31, 2022. In the following periods up to December 31, 2024, the gross profit margin continued to decrease gradually, dropping to 15.38%.

Overall, the company has maintained a gross profit margin above 15% throughout the period, indicating that the company is effectively managing its production costs and generating a reasonable level of profit from its sales. However, the recent downward trend in the margin may suggest potential challenges in managing production costs or pricing strategies that could impact the company's profitability in the future.