AutoNation Inc (AN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 692,200 | 1,021,100 | 1,377,400 | 1,373,000 | 381,600 |
| Total stockholders’ equity | US$ in thousands | 2,457,300 | 2,211,400 | 2,047,800 | 2,377,000 | 3,235,700 |
| ROE | 28.17% | 46.17% | 67.26% | 57.76% | 11.79% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $692,200K ÷ $2,457,300K
= 28.17%
AutoNation Inc's return on equity (ROE) has shown significant fluctuations over the years. The ROE increased from 11.79% as of December 31, 2020, to 57.76% by December 31, 2021, which indicates a substantial improvement in profitability and efficiency in generating returns for its shareholders. This upward trend continued with ROE reaching 67.26% as of December 31, 2022, reflecting a further enhancement in the company's ability to use shareholders' equity to generate profits.
However, in the subsequent years, there was a decline in AutoNation's ROE. By December 31, 2023, the ROE decreased to 46.17%, suggesting a comparatively lower profitability and efficiency in utilizing shareholders' equity for generating returns. This downward trend continued into December 31, 2024, with the ROE dropping to 28.17%, indicating a further decrease in the company's return on equity.
Overall, the fluctuating ROE of AutoNation Inc highlights varying levels of profitability and efficiency in utilizing shareholders' equity over the years, with periods of improvement followed by declines. It is essential for stakeholders to closely monitor these trends to assess the company's performance and financial health accurately.
Peer comparison
Dec 31, 2024