Penske Automotive Group Inc (PAG)

Operating 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
Operating income (ttm)	US$ in thousands	1,351,500	1,421,300	1,452,500	1,459,300	1,487,800	1,508,600	1,523,700	1,538,800	1,356,400	1,242,600	1,149,000	817,700	704,500	614,800	500,000	600,400	652,700	636,500	631,000	647,900
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
Operating profit margin		4.59%	4.87%	5.07%	5.19%	5.35%	5.57%	5.71%	5.75%	5.30%	4.96%	4.68%	3.86%	3.45%	2.99%	2.44%	2.65%	2.82%	2.80%	2.81%	2.87%

December 31, 2023 calculation

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

The operating profit margin of Penske Automotive Group Inc has shown a declining trend over the past year, starting at 5.35% in Q4 2022 and decreasing to 4.71% in Q4 2023. The margins have been consistently above 5% throughout the quarters, indicating a healthy level of profitability. However, the decreasing trend suggests that the company may be facing challenges in maintaining or improving its operational efficiency and cost control.

The highest operating profit margin was observed in Q2 2022 at 5.71%, followed closely by Q1 2022 with 5.75%. This indicates that the company was most profitable during the first half of 2022. The margins have since been on a slight decline, reaching their lowest point in Q4 2023.

Overall, Penske Automotive Group Inc's operating profit margin has been relatively stable, staying within a narrow range of around 4.7% to 5.7% over the past eight quarters. However, management may need to closely monitor and address the declining trend to ensure sustained profitability in the future.