Asbury Automotive Group Inc (ABG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 430,300 | 602,500 | 997,300 | 532,400 | 254,400 |
| Total stockholders’ equity | US$ in thousands | 3,502,100 | 3,244,100 | 2,903,300 | 2,115,500 | 905,500 |
| ROE | 12.29% | 18.57% | 34.35% | 25.17% | 28.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $430,300K ÷ $3,502,100K
= 12.29%
Asbury Automotive Group Inc's return on equity (ROE) has shown variations over the past five years. The ROE decreased from 28.09% in December 2020 to 25.17% in December 2021, indicating a slight decline in the company's ability to generate profit from its shareholders' equity.
However, in December 2022, there was a significant improvement in the ROE, rising to 34.35%. This surge suggests a more efficient utilization of equity to generate earnings.
Subsequently, the ROE experienced a decline to 18.57% by December 2023, possibly indicating challenges in sustaining the elevated profitability levels seen in the previous year.
By December 2024, the ROE further decreased to 12.29%, marking a continued downward trend in the company's ability to generate profits relative to its equity base.
Overall, Asbury Automotive Group Inc's ROE has displayed fluctuations over the years, suggesting varying levels of efficiency in utilizing shareholder equity to generate returns. Monitoring this metric over time is essential to assess the company's performance and profitability trends accurately.
Peer comparison
Dec 31, 2024