AutoNation Inc (AN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,651,900 | 2,024,500 | 1,902,800 | 563,200 | 823,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,211,400 | 2,047,800 | 2,377,000 | 3,235,700 | 3,162,100 |
| Return on total capital | 74.70% | 98.86% | 80.05% | 17.41% | 26.05% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,651,900K ÷ ($—K + $2,211,400K)
= 74.70%
Autonation Inc.'s return on total capital has fluctuated over the past five years. The return on total capital was 16.78% in 2023, declining from 26.12% in 2022 and 26.78% in 2021. Despite the decrease, the company's return on total capital in 2023 remains relatively strong compared to the 2020 and 2019 figures of 11.68% and 8.87%, respectively. This indicates that Autonation Inc. has been able to effectively utilize its capital to generate returns for shareholders, albeit with some variability in recent years. Further analysis would be needed to understand the specific factors driving these fluctuations in the return on total capital.
Peer comparison
Dec 31, 2023