Lithia Motors Inc (LAD)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,692,400	1,941,100	1,662,500	692,700	495,000
Revenue	US$ in thousands	30,878,400	28,126,000	22,726,200	13,069,400	12,624,200
Operating profit margin		5.48%	6.90%	7.32%	5.30%	3.92%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,692,400K ÷ $30,878,400K
= 5.48%

Lithia Motors, Inc.'s operating profit margin has demonstrated fluctuations over the past five years. In 2023, the company's operating profit margin stood at 5.45%, showing a decline from the previous year's level of 6.89%. Despite this decrease, the margin remains above the levels recorded in 2020 and 2019, indicating an improvement in the company's operational efficiency over the medium term. It is worth noting that the operating profit margin peaked at 7.31% in 2021, suggesting strong performance in that particular period. Overall, the company has shown variability in its operating profit margin, reflecting changes in its ability to generate profits from core operations during the analyzed period.