AutoNation Inc (AN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.88% | 19.04% | 19.51% | 19.16% | 17.49% |
| Operating profit margin | 4.88% | 6.13% | 7.50% | 7.36% | 5.31% |
| Pretax margin | 3.42% | 5.01% | 6.79% | 7.00% | 2.70% |
| Net profit margin | 2.59% | 3.79% | 5.10% | 5.31% | 1.87% |
AutoNation Inc's profitability ratios demonstrate fluctuations over the years. The Gross Profit Margin increased from 17.49% in 2020 to 19.16% in 2021, peaking at 19.51% in 2022, before declining slightly to 19.04% in 2023 and further to 17.88% in 2024.
The Operating Profit Margin also showed an upward trend, rising from 5.31% in 2020 to 7.36% in 2021 and reaching 7.50% in 2022. However, the margin decreased to 6.13% in 2023 and to 4.88% in 2024.
The Pretax Margin had a significant improvement, surging from 2.70% in 2020 to 7.00% in 2021, followed by a slight decrease to 6.79% in 2022. The margin dropped to 5.01% in 2023 and further to 3.42% in 2024.
The Net Profit Margin also exhibited growth, increasing from 1.87% in 2020 to 5.31% in 2021. However, the margin decreased to 5.10% in 2022 and declined to 3.79% in 2023 and 2.59% in 2024.
Overall, the fluctuations in these profitability ratios indicate varying levels of operational efficiency and financial performance for AutoNation Inc during the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.04% | 13.79% | 20.12% | 21.28% | 10.96% |
| Return on assets (ROA) | 5.32% | 8.52% | 13.69% | 15.35% | 3.86% |
| Return on total capital | 55.15% | 74.72% | 96.12% | 79.99% | 19.90% |
| Return on equity (ROE) | 28.17% | 46.17% | 67.26% | 57.76% | 11.79% |
AutoNation Inc's profitability ratios show a mix of performance over the past five years. The Operating Return on Assets (Operating ROA) increased from 10.96% in 2020 to 21.28% in 2021, and then slightly decreased to 20.12% in 2022 before dropping to 13.79% in 2023 and further to 10.04% in 2024. This ratio indicates the company's ability to generate profits from its operational assets.
The Return on Assets (ROA) demonstrated significant improvement, rising from 3.86% in 2020 to 15.35% in 2021, but gradually declined to 5.32% in 2024. ROA highlights the company's efficiency in generating profits from its total assets.
Return on Total Capital decreased from 19.90% in 2020 to 55.15% in 2024. This ratio measures the company's ability to generate returns for both debt and equity holders.
Return on Equity (ROE) exhibited strong growth, increasing from 11.79% in 2020 to 67.26% in 2022, before decreasing to 28.17% in 2024. ROE reveals the company's effectiveness in generating profits for its shareholders.
Overall, AutoNation Inc's profitability ratios indicate fluctuating performance over the years, with some ratios showing improvements in profitability while others displaying a decline. Further analysis of the underlying factors driving these trends would be necessary to understand the company's overall financial health and sustainability.