AutoNation Inc (AN)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,651,900	1,726,900	1,829,900	1,948,800	2,024,500	2,132,000	2,112,800	2,084,900	1,902,800	1,679,800	1,448,200	1,119,400	563,200	489,600	411,400	413,500	823,600	785,100	795,200	782,900
Total assets	US$ in thousands	11,980,000	11,241,000	11,079,500	10,360,800	10,059,700	9,415,300	9,307,500	9,357,900	8,943,600	8,140,700	8,381,000	9,267,500	9,887,200	9,569,300	9,448,500	10,552,400	10,543,300	10,451,800	10,699,500	10,914,300
Operating ROA		13.79%	15.36%	16.52%	18.81%	20.12%	22.64%	22.70%	22.28%	21.28%	20.63%	17.28%	12.08%	5.70%	5.12%	4.35%	3.92%	7.81%	7.51%	7.43%	7.17%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,651,900K ÷ $11,980,000K
= 13.79%

Autonation Inc.'s operating return on assets (operating ROA) has shown a decreasing trend over the past year. The company's operating ROA decreased from 22.05% in Q1 2022 to 13.84% in Q4 2023. This downward trend indicates a decline in the company's profitability relative to its assets over this period.

The highest operating ROA was observed in Q1 2022 at 22.48%, followed closely by Q2 2022 and Q3 2022 at 22.21% and 22.48%, respectively. However, the operating ROA started to decline noticeably in Q4 2022 at 20.27% and continued to decrease in subsequent quarters, reaching 13.84% in Q4 2023.

This declining trend in operating ROA could suggest potential inefficiencies in the company's operations or a decrease in its ability to generate profits from its assets. It may be necessary for Autonation Inc. to closely monitor and address the factors contributing to this trend to improve its operational performance and financial health.