Lithia Motors Inc (LAD)

Operating 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
Operating income (ttm)	US$ in thousands	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	495,000	479,400	470,200	461,900
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
Operating profit margin		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%	3.92%	3.87%	3.87%	3.85%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,692,600K ÷ $30,848,600K
= 5.49%

The operating profit margin of Lithia Motors, Inc. has exhibited a downward trend over the past quarters. In Q4 2023, the operating profit margin stood at 5.45%, compared to 5.67% in Q3 2023 and 6.05% in Q2 2023. This indicates a gradual decline in the company's profitability from recent periods. However, it is worth noting that the operating profit margin was even higher in the same period of the previous year, with Q4 2022 showing a margin of 6.89%.

Overall, the decreasing trend in the operating profit margin suggests that the company may be facing challenges in maintaining profitability or controlling operating expenses compared to previous periods. Further analysis of the company's financial statements and business operations would be necessary to determine the factors contributing to this decline and to develop strategies for improvement.