AutoNation Inc (AN)

Return on assets (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
Net income (ttm)	US$ in thousands	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	450,000	385,000	397,500	394,300
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
ROA		8.52%	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%	4.27%	3.68%	3.72%	3.61%

December 31, 2023 calculation

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

Autonation Inc.'s return on assets (ROA) has exhibited a declining trend over the past eight quarters, falling from 15.98% in Q1 2022 to 8.52% in Q4 2023. This decrease indicates a decrease in the company's ability to generate profits from its assets. The ROA of 8.52% in Q4 2023 implies that the company is generating $0.0852 in net income for every dollar of assets it holds.

The declining trend in ROA could be attributed to various factors such as decreasing profitability, increasing asset base, or inefficient asset utilization. Investors and stakeholders may need to closely monitor Autonation Inc.'s financial performance and management of assets to ensure sustainable profitability in the future. It is essential for the company to effectively manage its assets to improve ROA and enhance overall financial performance.