AutoNation Inc (AN)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,021,100	1,377,400	1,373,000	381,600	450,000
Total assets	US$ in thousands	11,980,000	10,059,700	8,943,600	9,887,200	10,543,300
ROA		8.52%	13.69%	15.35%	3.86%	4.27%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,021,100K ÷ $11,980,000K
= 8.52%

Autonation Inc.'s return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA decreased to 8.52% from 13.69% in 2022, indicating a decline in the company's ability to generate profits from its assets. This reduction may be a concerning trend for investors and stakeholders as it signifies a decrease in efficiency in utilizing the company's assets to generate earnings.

Comparing the ROA of 2023 to the higher figures of 2019 and 2021, it is evident that Autonation Inc. achieved higher returns on its assets during those years. The company's ROA peaked at 15.35% in 2021, showcasing a strong performance in utilizing its assets efficiently to generate profits.

The ROA of 2020 was relatively low at 3.86%, reflecting a challenging year for the company in terms of asset utilization and profitability. However, Autonation Inc. managed to improve its ROA in the subsequent years, showing resilience and potential for growth.

In conclusion, the trend in Autonation Inc.'s ROA highlights the importance of effectively managing assets to drive profitability. The company's performance in this aspect has varied over the years, emphasizing the need for continuous monitoring and strategic decision-making to enhance ROA and maximize shareholder value.