LKQ Corporation (LKQ)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,611,000 | 5,575,000 | 5,223,000 | 5,322,440 | 4,593,270 |
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Gross profit margin | 39.09% | 40.21% | 40.82% | 40.67% | 39.50% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,611,000K ÷ $14,355,000K
= 39.09%
The gross profit margin of LKQ Corporation has shown a generally increasing trend over the past five years, starting at 39.50% on December 31, 2020, and reaching a peak of 40.82% on December 31, 2022. This indicates that the company has been able to effectively manage its production costs and maintain a strong level of profitability on its sales.
However, there was a slight dip in the gross profit margin to 39.09% on December 31, 2024, which may raise some concerns about the company's ability to control costs or maintain pricing power in the face of changing market conditions.
Overall, LKQ Corporation has demonstrated a reasonably healthy gross profit margin performance, but it will be important for the company to monitor and manage its cost structure effectively in order to sustain and potentially improve upon this level of profitability in the future.