Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', APTV's gross profit margin was 15.6%, showing profitability after production and operational costs. Industry average for Auto Parts:O.E.M. in '2021' stood at 6.2%.
• In '2022', APTV's gross profit margin was 15.1%, showing profitability after production and operational costs. The decline from '2021' may indicate some operational or financial challenges. Industry average for Auto Parts:O.E.M. in '2022' stood at -8.7%. Industry average declined by 14.9% from previous year.
• In '2023', APTV's gross profit margin was 17.2%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2023' stood at -36.7%. Industry average declined by 28.0% from previous year.
• In '2024', APTV's gross profit margin was 18.8%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2024' stood at -5.2%. Industry average increased by 31.5% compared to previous year.
Overall, APTV's gross profit margin has steadily improved over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.