Lithia Motors Inc (LAD)

Net 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
Net income (ttm)	US$ in thousands	802,100	799,400	851,800	934,800	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
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
Net profit margin		2.22%	2.31%	2.54%	2.88%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $802,100K ÷ $36,158,900K
= 2.22%

The net profit margin of Lithia Motors Inc has shown fluctuation over the reported periods from March 31, 2020, to December 31, 2024. It increased gradually from 2.08% in March 2020 to a peak of 4.97% in March 31, 2022, indicating improved profitability. However, the net profit margin started to decline thereafter, reaching 2.22% by December 31, 2024. Despite experiencing fluctuations, the company has generally maintained a positive net profit margin throughout the analyzed period, though it decreased compared to the peak levels observed earlier in the period. This suggests the company's ability to generate profits relative to its revenue has been variable, possibly influenced by factors such as changes in costs, pricing strategies, or economic conditions. Continual monitoring and analysis of the net profit margin trend will be essential for understanding the company's financial performance and sustainability.