AutoNation Inc (AN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,211,400	2,047,800	2,377,000	3,235,700	3,162,100
ROE		46.17%	67.26%	57.76%	11.79%	14.23%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,021,100K ÷ $2,211,400K
= 46.17%

Autonation Inc.'s return on equity (ROE) has shown a fluctuating trend over the past five years. In 2023, the ROE decreased to 46.17% from 67.26% in 2022, indicating a decline in the company's ability to generate profit from shareholders' equity. However, it is important to note that the ROE in 2023 is still relatively high compared to the ROE values in 2021, 2020, and 2019.

The significant drop in ROE from 2022 to 2023 could be attributed to various factors such as changes in the company's profitability, leverage, or efficiency in asset utilization. It would be essential for stakeholders to further investigate the underlying reasons behind this decline to assess the company's financial performance and sustainability.

Overall, while Autonation Inc. experienced a notable decrease in ROE in 2023, the company's historical ROE values suggest that it has demonstrated relatively strong profitability in the past, albeit with some volatility. Investors and analysts should continue to monitor Autonation Inc.'s financial performance to assess its ability to generate returns on shareholders' equity effectively.