Asbury Automotive Group Inc (ABG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.62% | 20.09% | 19.34% | 17.15% | 16.21% |
| Operating profit margin | 6.44% | 8.25% | 8.05% | 5.20% | 4.51% |
| Pretax margin | 5.41% | 8.55% | 7.09% | 4.74% | 3.38% |
| Net profit margin | 4.07% | 6.46% | 5.41% | 3.57% | 2.56% |
Asbury Automotive Group Inc's profitability ratios have shown a general positive trend over the past five years. The gross profit margin has been relatively stable, ranging from 16.21% in 2019 to 20.09% in 2022, indicating efficient cost management and pricing strategies.
The operating profit margin has also seen improvement, with a steady increase from 4.62% in 2019 to 8.22% in 2022. This implies that the company has been effectively controlling its operating expenses and generating higher profits from its core operations.
The pretax margin has displayed some variability but has generally trended upward, reaching a peak of 8.55% in 2022. This metric reflects the company's ability to generate profits before accounting for taxes, suggesting efficient financial management.
The net profit margin, a key measure of overall profitability, has shown consistent growth, increasing from 2.56% in 2019 to 6.46% in 2022. This indicates that after accounting for all expenses, including taxes, the company is realizing higher profits relative to its total revenue.
Overall, the improving trend in profitability ratios suggests that Asbury Automotive Group Inc has been effectively managing its costs, operations, and overall financial performance, resulting in a stronger bottom line over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.39% | 15.87% | 9.89% | 10.09% | 11.16% |
| Return on assets (ROA) | 5.93% | 12.43% | 6.65% | 6.92% | 6.33% |
| Return on total capital | 29.81% | 25.23% | 14.24% | 17.17% | 19.94% |
| Return on equity (ROE) | 18.57% | 34.35% | 25.17% | 28.09% | 28.53% |
Asbury Automotive Group Inc's profitability ratios have shown variations over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a high of 15.81% in 2022 and a low of 9.83% in 2021. The ratio stood at 10.54% in 2023, indicating the company generated a 10.54% return on its assets through its core operations.
2. Return on assets (ROA) has also shown variability, ranging from a high of 12.43% in 2022 to a low of 6.33% in 2019. In 2023, the ROA was 5.93%, suggesting a lower profitability on total assets compared to the prior year.
3. Return on total capital has similarly displayed fluctuations, with a peak of 19.97% in 2022 and a trough of 12.27% in 2021. The ratio was 12.63% in 2023, indicating the company yielded a return of 12.63% on its total capital employed.
4. Return on equity (ROE) ranged from 34.35% in 2022 to 18.57% in 2023. The ROE was 18.57% in 2023, meaning Asbury Automotive Group Inc generated an 18.57% return for its shareholders' equity investment.
Overall, the profitability ratios suggest that the company's performance has been somewhat volatile in recent years, with fluctuations in profitability metrics such as ROA, Operating ROA, Return on total capital, and ROE. It would be crucial to further investigate the underlying reasons for these fluctuations to gauge the sustainability and efficiency of Asbury Automotive Group Inc's operations and financial management.