Asbury Automotive Group Inc (ABG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 602,500 | 997,300 | 532,400 | 254,400 | 184,400 |
| Total assets | US$ in thousands | 10,159,400 | 8,021,400 | 8,002,600 | 3,676,300 | 2,911,300 |
| ROA | 5.93% | 12.43% | 6.65% | 6.92% | 6.33% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $602,500K ÷ $10,159,400K
= 5.93%
Asbury Automotive Group Inc's return on assets (ROA) has exhibited variability over the past five years, with values ranging from 5.93% to 12.43%. In 2022, the ROA peaked at 12.43%, indicating that the company generated a higher level of net income relative to its total assets. However, in 2023, the ROA decreased to 5.93%, reflecting a decline in the efficiency of using its assets to generate profits.
The fluctuation in ROA suggests that Asbury Automotive Group Inc's management may have experienced challenges in effectively utilizing its assets to generate profits consistently. Investors and stakeholders may want to further investigate the factors contributing to these fluctuations in ROA to assess the company's operational efficiency and financial performance. Additionally, it is essential for the company to focus on improving and maintaining a sustainable ROA trajectory to enhance shareholder value and long-term profitability.
Peer comparison
Dec 31, 2023