LKQ Corporation (LKQ)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,575,000 | 5,223,000 | 5,322,000 | 4,593,000 | 4,851,790 |
| Revenue | US$ in thousands | 13,866,000 | 12,794,000 | 13,089,000 | 11,629,000 | 12,506,100 |
| Gross profit margin | 40.21% | 40.82% | 40.66% | 39.50% | 38.80% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,575,000K ÷ $13,866,000K
= 40.21%
LKQ Corp's gross profit margin has shown a consistent trend of improvement over the past five years, increasing from 38.80% in 2019 to 40.21% in 2023. This indicates that the company has been effectively managing its cost of goods sold and generating higher gross profits relative to its revenue. The relatively stable and relatively high gross profit margin suggests that LKQ Corp is efficiently controlling production costs and pricing its products effectively. This trend is a positive signal for investors as it demonstrates the company's ability to maintain solid profitability in its operations.