Penske Automotive Group Inc (PAG)

Net profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,053,200	1,160,500	1,237,200	1,310,400	1,380,000	1,393,300	1,408,300	1,373,200	1,187,800	1,076,700	968,200	674,400	543,600	445,000	314,600	387,300	435,800	432,300	446,300	463,100
Revenue (ttm)	US$ in thousands	29,451,800	29,195,100	28,674,800	28,137,700	27,795,800	27,098,900	26,694,800	26,777,500	25,577,100	25,052,000	24,527,000	21,190,400	20,425,800	20,532,600	20,522,100	22,620,300	23,169,200	22,727,100	22,418,100	22,602,600
Net profit margin		3.58%	3.97%	4.31%	4.66%	4.96%	5.14%	5.28%	5.13%	4.64%	4.30%	3.95%	3.18%	2.66%	2.17%	1.53%	1.71%	1.88%	1.90%	1.99%	2.05%

December 31, 2023 calculation

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

Penske Automotive Group Inc's net profit margin has shown a declining trend over the past eight quarters. The net profit margin, which represents the percentage of revenue that translates into profit after all expenses are deducted, decreased from 5.13% in Q1 2022 to 3.57% in Q4 2023.

This declining trend indicates that the company's profitability relative to its revenue has been gradually decreasing. Factors such as increasing costs, declining sales prices, or inefficiencies in operations may be contributing to this downward trend.

It is important for the company to closely monitor and address the factors impacting its net profit margin in order to maintain or improve its financial performance in the future. A lower net profit margin may impact the company's overall financial health, investor confidence, and ability to reinvest in its business for future growth.