LKQ Corporation (LKQ)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,199,000 | 1,357,000 | 1,581,000 | 1,474,370 | 985,577 |
| Revenue | US$ in thousands | 14,355,000 | 13,866,000 | 12,794,000 | 13,088,500 | 11,628,800 |
| Operating profit margin | 8.35% | 9.79% | 12.36% | 11.26% | 8.48% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,199,000K ÷ $14,355,000K
= 8.35%
The operating profit margin of LKQ Corporation has shown fluctuations over the years based on the provided data. In December 2020, the operating profit margin stood at 8.48%, indicating that the company generated 8.48 cents of operating profit for every dollar of revenue.
Subsequently, there was an increase in the operating profit margin to 11.26% by December 2021, suggesting improved efficiency in converting revenue into operating profit. This positive trend continued into December 2022, with the operating profit margin further rising to 12.36%.
However, there was a slight dip in the operating profit margin in December 2023 to 9.79%, which may signify potential challenges in controlling operating expenses or a decrease in revenue relative to costs.
By December 2024, the operating profit margin declined to 8.35%, indicating a reduced ability to convert revenue into operating profit compared to the prior years. It would be important for LKQ Corporation to closely monitor its operating expenses and revenue generation strategies to maintain or improve its operating profit margin in the future.