Asbury Automotive Group Inc (ABG)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	430,300	357,000	399,900	568,200	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
Total stockholders’ equity	US$ in thousands	3,502,000	3,362,400	3,330,700	3,346,900	3,244,100	3,248,500	3,068,500	3,049,200	2,903,300	2,642,800	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
ROE		12.29%	10.62%	12.01%	16.98%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $430,300K ÷ $3,502,000K
= 12.29%

Asbury Automotive Group Inc's return on equity (ROE) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ROE started at 24.66% in March 2020 and gradually increased to a peak of 37.46% in June 2021, indicating efficient utilization of shareholder equity to generate profits.

However, after reaching its peak, the ROE began to decline, dropping to 18.57% by December 2023. This decrease could be a result of a decline in profitability relative to the shareholder's equity. The trend continued as the ROE further decreased to 12.29% by December 2024.

Overall, despite the fluctuations, Asbury Automotive Group Inc maintained relatively high ROE figures during the period, indicating a strong ability to generate profits from shareholders' investments. However, the declining trend towards the end of the period may warrant further investigation into the company's profitability and efficiency in utilizing equity.