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Operating Margin % is calculated as Operating Income divided by its Revenue. Lithia Motors's Operating Income for the three months ended in Sep. 2024 was $382 Mil. Lithia Motors's Revenue for the three months ended in Sep. 2024 was $9,221 Mil. Therefore, Lithia Motors's Operating Margin % for the quarter that ended in Sep. 2024 was 4.15%.
Good Sign:
Lithia Motors Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lithia Motors's Operating Margin % or its related term are showing as below:
Lithia Motors's 5-Year Average Operating Margin % Growth Rate was 12.10% per year.
Lithia Motors's Operating Income for the three months ended in Sep. 2024 was $382 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $1,534 Mil.
The historical data trend for Lithia Motors's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lithia Motors Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Operating Margin % | Get a 7-Day Free Trial | 3.85 | 5.15 | 7.23 | 6.67 | 5.49 |
Lithia Motors Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Operating Margin % | Get a 7-Day Free Trial | 5.01 | 6.18 | 3.37 | 4.21 | 4.15 |
For the Auto & Truck Dealerships subindustry, Lithia Motors's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lithia Motors's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
Operating Margin % | = | Operating Income (A: Dec. 2023 ) | / | Revenue (A: Dec. 2023 ) |
= | 1704.2 | / | 31042.3 | |
= | 5.49 % |
Lithia Motors's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as
Operating Margin % | = | Operating Income (Q: Sep. 2024 ) | / | Revenue (Q: Sep. 2024 ) |
= | 382.3 | / | 9221 | |
= | 4.15 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lithia Motors (NYSE:LAD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Lithia Motors's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sidney B Deboer | director, officer: Executive Chairman | 234 VISTA ST., ASHLAND OR 97520 |
Louis Miramontes | director | 150 N. BARTLETT ST., MEDFORD OR 97501 |
Shauna Mcintyre | director | 150 N. BARTLETT STREET, MEDFORD OR 97501 |
Bryan B Deboer | director, officer: Chief Executive officer | 150 N. BARTLETT STREET, MEDFORD OR 97501 |
Tina Miller | officer: VP, CAO & Principal Fin. Off. | 150 N. BARTLETT ST., MEDFORD OR 97501 |
Chris Holzshu | officer: Sr. Vice President & CFO | 150 N. BARTLETT STREET, MEDFORD OR 97501 |
David Stork | officer: Senior Vice President | 150 N. BARTLETT STREET, MEDFORD OR 97501 |
George N Hines | officer: SVP, Chief Tech. & Innov. Off. | 150 N. BARTLETT ST., MEDFORD OR 97501 |
Loretz Congdon Stacy | director | C/O CORE-MARK HOLDING CO. INC., 395 OYSTER POINT BLVD., SUITE 415, SOUTH SAN FRANCISCO CA 94080 |
Gary M Glandon | officer: Chief People Officer | C/O LITHIA MOTORS, INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501 |
James E. Lentz | director | C/O LITHIA MOTORS INC., 150 NORTH BARTLETT STREET, MEDFORD OR 97501 |
Scott Hillier | officer: Sr. VP of Operations | 150 N. BARTLETT STREET, MEDFORD OR 97501 |
Kenneth E Roberts | director | 150 N. BARTLETT ST., MEDFORD OR 97501 |
Marguerite Celeste | officer: Senior Vice President | 150 N BARTLETT STREET, MEDFORD OR 97501 |
Susan O Cain | director | 150 NORTH BARTLETT STREET, MEDFORD OR 97501 |
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