AutoNation Inc (AN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.04% | 19.51% | 19.16% | 17.49% | 16.51% |
| Operating profit margin | 6.13% | 7.50% | 7.36% | 2.76% | 3.86% |
| Pretax margin | 5.01% | 6.79% | 7.00% | 2.70% | 2.87% |
| Net profit margin | 3.79% | 5.10% | 5.31% | 1.87% | 2.11% |
Autonation Inc.'s profitability ratios have shown a generally increasing trend over the past five years. The gross profit margin has been relatively stable, ranging from 16.51% in 2019 to 19.51% in 2022. This indicates the company's ability to control its cost of goods sold and generate profits from its core operations.
The operating profit margin has improved significantly from 3.67% in 2019 to 7.56% in 2022, showing an enhanced efficiency in managing operating expenses and earning profits before interest and taxes. This reflects positively on the company's operational performance and cost management strategies.
The pretax margin also demonstrates an increasing trend, reaching 7.00% in 2021, before slightly declining to 5.01% in 2023. This indicates Autonation's ability to generate profits before accounting for income taxes, with a favorable trend towards higher profitability.
The net profit margin, which represents the company's bottom line profitability, has shown improvement over the years, increasing from 2.11% in 2019 to 5.10% in 2022. This indicates that Autonation has been successful in controlling its overall expenses and generating higher profits for its shareholders.
In conclusion, Autonation Inc. has demonstrated consistent improvements in its profitability ratios over the past five years, reflecting a positive trend in the company's ability to manage costs, increase operational efficiency, and enhance overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.79% | 20.12% | 21.28% | 5.70% | 7.81% |
| Return on assets (ROA) | 8.52% | 13.69% | 15.35% | 3.86% | 4.27% |
| Return on total capital | 74.70% | 98.86% | 80.05% | 17.41% | 26.05% |
| Return on equity (ROE) | 46.17% | 67.26% | 57.76% | 11.79% | 14.23% |
Autonation Inc.'s profitability ratios show varying performance over the past five years. The Operating Return on Assets (Operating ROA) has been relatively stable, ranging from 9.56% in 2020 to 21.06% in 2021. This ratio indicates the company's operational efficiency in generating profits from its assets, with a notable improvement in 2021.
The Return on Assets (ROA) reflects the overall profitability of the company, showing fluctuations from 3.86% in 2020 to 15.35% in 2021. Higher ROA values indicate better utilization of assets to generate profits, with Autonation demonstrating significant improvements in this aspect in recent years.
Autonation's Return on Total Capital has also shown variability, ranging from 8.87% in 2019 to 26.78% in 2021. This ratio highlights the efficiency of utilizing both equity and debt capital to generate returns for shareholders and creditors, with the company's performance notably improving in recent years.
Finally, the Return on Equity (ROE) has exhibited substantial growth over the years, with the ratio increasing from 11.79% in 2019 to 67.26% in 2022. ROE reflects the company's ability to generate profits from shareholders' equity, with Autonation demonstrating a significant enhancement in this metric, indicating improved profitability and efficiency in generating returns for equity investors.
Overall, Autonation Inc. has shown improving profitability ratios over the past five years, reflecting enhanced operational efficiency, better asset utilization, and stronger returns for both capital providers and equity investors.