Penske Automotive Group Inc (PAG)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,351,500	1,487,800	1,356,400	704,500	652,700
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Operating profit margin		4.59%	5.36%	5.30%	3.45%	2.82%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,351,500K ÷ $29,451,800K
= 4.59%

Penske Automotive Group Inc's operating profit margin has shown fluctuations over the past five years. The company's operating profit margin was 4.71% as of December 31, 2023. This represents a slight decrease compared to the previous year, where the margin was 5.35% as of December 31, 2022. Despite this decline, the operating profit margin for 2023 remains relatively stable compared to the margins in 2021 and 2020, which were 5.31% and 3.45% respectively.

The improvement in operating profit margin from 2019 to 2022 indicates the company's ability to manage its operating expenses more efficiently and generate higher profits from its core operations. However, the slight decline in 2023 suggests potential challenges in maintaining or further improving profitability. It is essential for investors and stakeholders to closely monitor the company's operational efficiency and cost management strategies to ensure sustainable profit margins in the future.