AutoNation Inc (AN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,211,400	2,142,000	2,091,800	2,020,300	2,047,800	2,255,200	2,325,000	2,345,600	2,377,000	2,356,500	2,856,800	3,193,900	3,235,700	3,357,900	3,137,700	2,846,900	3,162,100	2,996,700	2,882,900	2,785,800
ROE		46.17%	50.95%	57.38%	64.54%	67.26%	65.54%	63.97%	63.77%	57.76%	48.27%	33.54%	26.72%	11.79%	11.55%	9.71%	4.42%	14.23%	12.85%	13.79%	14.15%

December 31, 2023 calculation

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

Autonation Inc.'s return on equity (ROE) has displayed fluctuations over the past eight quarters. The ROE has gradually decreased from 67.26% in Q4 2022 to 46.17% in Q4 2023. The company experienced a peak ROE of 64.54% in Q1 2023 since then, there was a decline. The ROE remained above 60% for the majority of the quarters, indicating strong profitability and efficient use of shareholders' equity to generate earnings. However, the recent downward trend suggests that Autonation Inc. may be facing challenges in maintaining its high levels of return on equity. Further analysis of the company's financial performance and operational efficiency may be warranted to understand the factors contributing to these fluctuations.