Penske Automotive Group's gross profit for the
three
months ended in Dec. 2023 was $1,188 Mil. Penske Automotive Group's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $4,934 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Penske Automotive Group's gross profit for the
three
months ended in Dec. 2023 was $1,188 Mil. Penske Automotive Group's Revenue for the
three
months ended in Dec. 2023 was $7,272 Mil. Therefore, Penske Automotive Group's Gross Margin % for the quarter that ended in Dec. 2023 was 16.34%.
Penske Automotive Group had a gross margin of 16.34% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of Penske Automotive Group was 17.40%. The lowest was 14.75%. And the median was 15.03%.
Penske Automotive Group Gross Profit Historical Data
The historical data trend for Penske Automotive Group's Gross Profit 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.
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Penske Automotive Group Gross Profit Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Gross Profit distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Gross Profit falls into.
Penske Automotive Group Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Penske Automotive Group's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,934 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Penske Automotive Group's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Penske Automotive Group (NYSE:PAG) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Penske Automotive Group had a gross margin of 16.34% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Penske Automotive Group Gross Profit Related Terms
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Penske Automotive Group (Penske Automotive Group) Business Description
Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
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