Asbury Automotive Group Inc (ABG)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	602,500	900,200	936,000	941,000	997,300	784,600	726,600	677,300	532,400	481,000	430,200	327,700	254,400	208,900	157,700	163,000	184,400	181,200	180,500	168,800
Total stockholders’ equity	US$ in thousands	3,244,100	3,248,500	3,068,600	3,049,200	2,903,500	2,642,900	2,410,400	2,182,500	2,115,500	1,301,300	1,148,300	998,000	905,500	811,900	713,100	660,900	646,300	600,000	556,300	504,600
ROE		18.57%	27.71%	30.50%	30.86%	34.35%	29.69%	30.14%	31.03%	25.17%	36.96%	37.46%	32.84%	28.09%	25.73%	22.11%	24.66%	28.53%	30.20%	32.45%	33.45%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $602,500K ÷ $3,244,100K
= 18.57%

Asbury Automotive Group Inc's return on equity (ROE) has shown a declining trend over the past quarters. The ROE decreased from 34.35% in Q4 2022 to 18.57% in Q4 2023. This indicates that the company's ability to generate profits from its shareholder's equity has weakened. However, it's worth noting that the ROE increased in the subsequent quarters but remained below the levels seen in 2022.

The decrease in ROE could be attributed to various factors, such as a slowdown in revenue growth, increased expenses, or changes in the capital structure. It would be important for stakeholders to further investigate the drivers behind this trend to assess the company's operational efficiency and financial health. Additionally, monitoring the ROE performance in upcoming quarters will provide insights into the company's ability to generate value for its shareholders.