Lithia Motors Inc (LAD)

Operating 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
Operating income (ttm)	US$ in thousands	1,575,500	1,531,700	1,572,800	1,655,000	1,692,600	1,720,500	1,770,100	1,813,400	1,941,100	2,039,000	2,003,600	1,930,800	1,662,400	1,394,700	1,154,800	838,200	692,800	584,900	492,100	479,300
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
Operating profit margin		4.36%	4.43%	4.69%	5.11%	5.49%	5.70%	6.06%	6.40%	6.91%	7.44%	7.61%	7.69%	7.31%	6.84%	6.47%	5.74%	5.30%	4.73%	4.07%	3.82%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,575,500K ÷ $36,158,900K
= 4.36%

Lithia Motors Inc's operating profit margin has exhibited fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The trend showed a gradual increase from 3.82% in March 2020 to a peak of 7.69% in March 2022. However, there was a slight decline in the margin to 4.36% by December 31, 2024.

During this period, the company's ability to generate profits from its core business operations improved, as indicated by the rising operating profit margins. This could be attributed to factors such as effective cost management, revenue growth, operational efficiencies, or strategic initiatives that enhanced profitability.

The varying margins suggest that the company may have experienced changes in its operating performance, market conditions, or competitive landscape over the period. It is essential for stakeholders to closely monitor these fluctuations to assess the company's operational efficiency and overall financial health.