AutoNation Inc (AN)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	692,200	722,300	780,200	922,500	1,021,100	1,091,300	1,200,200	1,304,000	1,377,400	1,478,100	1,487,200	1,495,700	1,373,000	1,137,400	958,300	853,300	381,600	387,800	304,700	125,700
Total assets	US$ in thousands	13,001,700	12,906,600	12,828,600	12,041,300	12,355,700	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
ROA		5.32%	5.60%	6.08%	7.66%	8.26%	9.71%	10.83%	12.59%	13.69%	15.70%	15.98%	15.98%	15.35%	13.97%	11.43%	9.21%	3.86%	4.05%	3.22%	1.19%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $692,200K ÷ $13,001,700K
= 5.32%

AutoNation Inc's return on assets (ROA) has shown a fluctuating trend over the periods provided. From March 31, 2020, to December 31, 2021, the ROA consistently increased, indicating the company's ability to generate more profit for each dollar of assets employed. The ROA reached its peak at 15.98% in June 30, 2022, and maintained this level in September 30, 2022.

However, from December 31, 2022, the ROA started declining, dropping to 5.32% by the end of December 31, 2024. This decline suggests a decrease in the efficiency of utilizing assets to generate profits. It would be important for stakeholders to closely monitor this metric in future periods to understand whether this decline is temporary or a concerning long-term trend.