LKQ Corporation (LKQ)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 685,000 | 936,000 | 1,149,000 | 1,091,000 | 638,423 |
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Net profit margin | 4.77% | 6.75% | 8.98% | 8.34% | 5.49% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $685,000K ÷ $14,355,000K
= 4.77%
Net profit margin is a key financial metric that measures a company's profitability by indicating the percentage of revenue that translates into net income after accounting for all expenses. Looking at LKQ Corporation's net profit margin over the past five years, the trend shows fluctuations.
In December 2020, the net profit margin stood at 5.49%, indicating that for every dollar of revenue generated, the company retained $0.0549 as net income. This figure improved in the subsequent years, reaching 8.34% in December 2021 and further increasing to 8.98% in December 2022. These improvements suggest an enhanced ability to translate revenue into profit, reflecting positively on the company's operational efficiency and cost management during these periods.
However, the trend reversed in December 2023 with a net profit margin of 6.75%, showing a slight decrease from the previous year. This decline may indicate challenges or changes in the company's financial performance that impacted its profitability during this period. In December 2024, the net profit margin decreased further to 4.77%, marking a significant drop from the previous year.
Overall, while LKQ Corporation exhibited a positive trend in net profit margin from 2020 to 2022, the subsequent years showed a decline in profitability. This suggests that the company may have faced challenges or experienced changes affecting its ability to maintain or improve profitability levels. Further analysis of the underlying factors driving these fluctuations would be needed to understand the full impact on LKQ Corporation's financial performance.