Lithia Motors Inc (LAD)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 802,000 | 1,000,800 | 1,251,000 | 1,060,100 | 470,300 |
| Revenue | US$ in thousands | 36,218,600 | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 |
| Net profit margin | 2.21% | 3.24% | 4.45% | 4.66% | 3.60% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $802,000K ÷ $36,218,600K
= 2.21%
The net profit margin of Lithia Motors Inc has exhibited fluctuations over the years, indicating changes in its profitability. The margin increased from 3.60% in December 2020 to 4.66% in December 2021, suggesting improved efficiency in generating profits from revenue. However, it slightly decreased to 4.45% by December 2022, indicating a potential dip in profitability. This trend continued as the margin further declined to 3.24% by December 2023, and notably dropped to 2.21% by December 2024.
Overall, the declining net profit margin of Lithia Motors Inc from 2021 to 2024 suggests potential challenges in maintaining profitability, which may necessitate a closer examination of cost management, revenue generation strategies, and operational efficiency to sustain or improve financial performance in the future.
Peer comparison
Dec 31, 2024