Lithia Motors Inc (LAD)

Net 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
Net income (ttm)	US$ in thousands	1,000,900	1,035,000	1,103,100	1,137,200	1,250,700	1,294,200	1,272,500	1,246,100	1,060,100	956,600	807,500	580,300	470,300	350,700	277,100	261,300	271,500	263,400	271,300	270,100
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
Net profit margin		3.24%	3.43%	3.78%	4.01%	4.45%	4.72%	4.84%	4.97%	4.66%	4.69%	4.53%	3.97%	3.60%	2.84%	2.29%	2.08%	2.15%	2.13%	2.24%	2.25%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,000,900K ÷ $30,848,600K
= 3.24%

Lithia Motors, Inc.'s net profit margin has shown a declining trend over the past quarters, starting at 4.95% in Q1 2022 and decreasing to 3.22% in Q4 2023. This indicates that the company's profitability relative to its revenue has been on a downward trajectory. The company experienced its highest net profit margin of 4.95% in Q1 2022 and its lowest of 3.22% in Q4 2023. This trend suggests that the company may be facing challenges in managing its costs or generating sufficient revenue to maintain higher profitability levels. Further investigation into the factors influencing this decline in net profit margin may be necessary to identify potential areas for improvement in the company's financial performance.