Penske Automotive Group Inc (PAG)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,053,200	1,380,000	1,187,800	543,600	435,800
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Net profit margin		3.58%	4.97%	4.64%	2.66%	1.88%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $1,053,200K ÷ $29,451,800K
= 3.58%

The net profit margin of Penske Automotive Group Inc has shown a fluctuating trend over the past five years. In 2019, the net profit margin stood at 1.88%, indicating that for every dollar of revenue generated, the company retained about 1.88 cents as net profit. Subsequently, there was an improvement in 2020 to 2.66%, suggesting better efficiency in controlling costs and generating profit.

The year 2021 saw a further increase in net profit margin to 4.65%, signifying a notable improvement in profitability compared to the previous year. However, in 2022, there was a slight decrease to 4.96%, which could be a result of various factors such as changes in operating expenses, revenue fluctuations, or different strategic decisions.

Finally, by the end of 2023, the net profit margin stood at 3.57%, showing a decrease from the previous year. This decrease could be a cause for further analysis to understand the underlying reasons impacting profitability. Overall, the trend in net profit margin for Penske Automotive Group Inc indicates fluctuations in profitability levels over the analyzed period.