LKQ Corporation (LKQ)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,357,000 | 1,581,000 | 1,474,000 | 986,000 | 896,643 |
| Revenue | US$ in thousands | 13,866,000 | 12,794,000 | 13,089,000 | 11,629,000 | 12,506,100 |
| Operating profit margin | 9.79% | 12.36% | 11.26% | 8.48% | 7.17% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,357,000K ÷ $13,866,000K
= 9.79%
The operating profit margin of LKQ Corp has shown a generally increasing trend over the past five years. From 7.84% in 2019, the margin has improved to 10.26% in 2023. This indicates that the company has been able to generate more operating profit relative to its total revenue over the years. The improvement suggests effective cost management, better operational efficiency, or potentially higher pricing power. However, it's worth noting that there was a slight dip in 2020 compared to the preceding year, followed by a more significant increase in 2021 and 2022. Overall, the trend in LKQ Corp's operating profit margin showcases a positive trajectory, reflecting the company's ability to convert its revenue into operating profits efficiently.