Asbury Automotive Group Inc (ABG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 819,300 | 697,800 | 733,700 | 919,800 | 934,600 | 1,316,400 | 1,360,300 | 1,407,700 | 1,488,400 | 1,224,500 | 1,126,400 | 1,015,800 | 801,300 | 699,500 | 632,800 | 496,600 | 408,100 | 352,900 | 291,300 | 306,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 23.40% | 20.75% | 22.03% | 27.48% | 28.81% | 40.52% | 44.33% | 46.17% | 51.27% | 46.33% | 46.73% | 46.54% | 37.88% | 53.75% | 55.11% | 49.76% | 45.07% | 43.47% | 40.85% | 46.42% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $819,300K ÷ ($—K + $3,502,000K)
= 23.40%
Asbury Automotive Group Inc's return on total capital has shown some fluctuations over the reported periods. The metric started at a high of 46.42% on March 31, 2020, indicating a strong ability to generate returns relative to the total capital employed. It then decreased slightly to 40.85% by June 30, 2020, before rebounding to 45.07% by December 31, 2020.
The return on total capital peaked at 55.11% on June 30, 2021, signaling a significant improvement in capital efficiency, but then decreased to 37.88% by December 31, 2021. Subsequently, the metric ranged between 40-50% for the next few periods.
However, from March 31, 2023, there was a noticeable decline in the return on total capital, dropping to 27.48% by June 30, 2024, which indicates a decreasing trend in the company's ability to generate returns in relation to its total capital employed.
Overall, while Asbury Automotive Group Inc has demonstrated strong capital efficiency in the past, the recent declining trend in the return on total capital may warrant further investigation into the company's operational performance and capital allocation strategies.
Peer comparison
Dec 31, 2024