Asbury Automotive Group Inc (ABG)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	953,400	1,131,500	1,180,400	1,228,200	1,272,500	1,206,000	1,093,400	976,300	791,800	690,200	608,300	472,100	370,800	315,400	278,500	282,200	325,000	323,200	321,800	315,500
Total assets	US$ in thousands	10,159,400	8,255,000	8,165,900	8,182,800	8,021,400	7,816,300	7,638,800	7,860,100	8,002,600	3,571,400	3,524,900	3,582,300	3,676,300	3,530,600	2,934,400	3,069,200	2,911,300	2,816,500	2,814,000	2,904,900
Operating ROA		9.38%	13.71%	14.46%	15.01%	15.86%	15.43%	14.31%	12.42%	9.89%	19.33%	17.26%	13.18%	10.09%	8.93%	9.49%	9.19%	11.16%	11.48%	11.44%	10.86%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $953,400K ÷ $10,159,400K
= 9.38%

Asbury Automotive Group Inc's operating return on assets (operating ROA) has shown a decreasing trend over the past year, starting at 15.81% in Q4 2022 and falling to 10.54% in Q4 2023. This indicates a decline in the company's ability to generate operating income relative to its total assets. Despite fluctuations between quarters, the overall trend suggests a decrease in efficiency in utilizing its assets to generate operating profits. It would be prudent for management to analyze the factors contributing to this trend and implement strategies to improve operational efficiency and enhance returns on assets in the future.