AutoNation Inc (AN)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,457,300 2,371,200 2,183,200 2,359,800 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
ROE 28.17% 30.46% 35.74% 39.09% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $692,200K ÷ $2,457,300K
= 28.17%

AutoNation Inc's return on equity (ROE) has shown variability over the quarters from March 31, 2020, to December 31, 2024. The ROE increased steadily from 4.42% in March 2020 to a peak of 67.26% in December 2022, indicating improved efficiency in generating profits from shareholders' equity investments.

However, the ROE declined in the subsequent quarters, reaching 28.17% by December 31, 2024. This decrease may suggest a decrease in the company's ability to generate profits with the available equity. It is essential for AutoNation Inc to analyze the factors contributing to this decline and take necessary steps to improve its ROE to ensure sustainable profitability and shareholder value in the future.