Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2021', LKQ's operating profit margin was 11.4%, highlighting profit earned from core business operations. Industry average for Motor Vehicles in '2021' stood at -17.6%.
• In '2022', LKQ's operating profit margin was 11.3%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Motor Vehicles in '2022' stood at -19.8%. Industry average declined by 2.2% from previous year.
• In '2023', LKQ's operating profit margin was 10.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Motor Vehicles in '2023' stood at -41.6%. Industry average declined by 21.8% from previous year.
• In '2024', LKQ's operating profit margin was 9.3%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Motor Vehicles in '2024' stood at -154.9%. Industry average declined by 113.3% from previous year.
Overall, LKQ's operating profit margin has consistently declined during the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.