Penske Automotive Group Inc (PAG)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	4,933,800	4,838,800	4,440,800	3,184,500	3,455,500
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Gross profit margin		16.75%	17.43%	17.36%	15.59%	14.91%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,933,800K ÷ $29,451,800K
= 16.75%

Over the past five years, Penske Automotive Group Inc has exhibited varying levels of gross profit margin, a key indicator of operational efficiency and pricing strategy effectiveness. The company's gross profit margin has ranged from 14.91% in 2019 to 17.40% in 2022. In 2023, the gross profit margin declined slightly to 16.71%. This may suggest that the company's cost of goods sold relative to its revenue has increased slightly compared to the previous year. Overall, Penske Automotive Group Inc has generally maintained healthy gross profit margins, indicating the ability to generate profits after accounting for the direct costs associated with producing or acquiring the goods it sells.