LKQ Corporation (LKQ)
Gross 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 5,449,000 | 5,523,000 | 5,520,000 | 5,574,000 | 5,575,000 | 5,399,000 | 5,285,000 | 5,238,000 | 5,223,000 | 5,269,620 | 5,337,010 | 5,385,720 | 5,322,430 | 5,222,660 | 5,077,810 | 4,673,100 | 4,593,270 | 4,619,430 | 4,621,220 | 4,857,410 |
| Revenue (ttm) | US$ in thousands | 14,355,000 | 14,499,000 | 14,483,000 | 14,220,000 | 13,866,000 | 13,366,000 | 12,902,000 | 12,795,000 | 12,794,000 | 12,978,990 | 13,171,600 | 13,265,710 | 13,088,500 | 12,856,400 | 12,607,470 | 11,798,680 | 11,628,830 | 11,684,800 | 11,784,890 | 12,406,740 |
| Gross profit margin | 37.96% | 38.09% | 38.11% | 39.20% | 40.21% | 40.39% | 40.96% | 40.94% | 40.82% | 40.60% | 40.52% | 40.60% | 40.66% | 40.62% | 40.28% | 39.61% | 39.50% | 39.53% | 39.21% | 39.15% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $5,449,000K ÷ $14,355,000K
= 37.96%
The gross profit margin of LKQ Corporation has shown a generally increasing trend from March 31, 2020, to March 31, 2023, with a peak of 40.96% in June 30, 2023. This indicates that the company has been able to effectively control its cost of goods sold relative to its sales revenue during this period.
However, there was a slight decline in the gross profit margin in the subsequent quarters from September 30, 2023, to December 31, 2024, reaching as low as 37.96% by the end of December 31, 2024. This decrease suggests that the company may have experienced challenges in managing its production costs or facing pricing pressures.
Overall, it is essential for LKQ Corporation to closely monitor its gross profit margin and implement strategies to enhance profitability, such as optimizing production processes, negotiating favorable supplier contracts, or adjusting pricing strategies in response to market conditions.