Lithia Motors Inc (LAD)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,575,600 | 1,692,400 | 1,941,100 | 1,662,500 | 692,700 |
| Revenue | US$ in thousands | 36,218,600 | 30,878,400 | 28,126,000 | 22,726,200 | 13,069,400 |
| Operating profit margin | 4.35% | 5.48% | 6.90% | 7.32% | 5.30% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,575,600K ÷ $36,218,600K
= 4.35%
The operating profit margin of Lithia Motors Inc has shown fluctuation over the years as per the provided data. It was at 5.30% on December 31, 2020, indicating that for every dollar of revenue generated, the company retained $0.053 as operating profit. Subsequently, the margin increased to 7.32% by December 31, 2021, implying an improvement in operational efficiency.
However, there was a slight decrease in the operating profit margin to 6.90% by December 31, 2022, followed by a sharper decline to 5.48% by December 31, 2023. The downward trend continued as the margin further dropped to 4.35% by December 31, 2024.
These fluctuations in the operating profit margin suggest variability in the company's ability to generate profits from its core business activities relative to its revenues. It is essential for the company to closely monitor and manage its operating expenses and revenue streams to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2024