Asbury Automotive Group Inc (ABG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 967,000 | 1,479,700 | 799,800 | 370,800 | 325,000 |
| Long-term debt | US$ in thousands | — | 2,960,900 | 3,502,000 | 1,253,900 | 983,700 |
| Total stockholders’ equity | US$ in thousands | 3,244,100 | 2,903,500 | 2,115,500 | 905,500 | 646,300 |
| Return on total capital | 29.81% | 25.23% | 14.24% | 17.17% | 19.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $967,000K ÷ ($—K + $3,244,100K)
= 29.81%
Asbury Automotive Group Inc's return on total capital has exhibited variability over the last five years, ranging from a low of 12.27% in 2021 to a peak of 19.97% in 2022. The return on total capital for the most recent year, 12.63% in 2023, indicates a slight decrease compared to the previous year. This metric measures the company's ability to generate profits from its total invested capital, including both debt and equity. Although the return on total capital has fluctuated, the company has generally been able to generate double-digit returns, highlighting its efficiency in utilizing capital resources to generate profits. It will be valuable to monitor this metric in subsequent periods to assess Asbury Automotive Group Inc's ongoing financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2023