AutoNation Inc (AN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,355,100 | 1,652,400 | 1,968,400 | 1,901,400 | 643,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,457,300 | 2,211,400 | 2,047,800 | 2,377,000 | 3,235,700 |
| Return on total capital | 55.15% | 74.72% | 96.12% | 79.99% | 19.90% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,355,100K ÷ ($—K + $2,457,300K)
= 55.15%
AutoNation Inc's return on total capital has shown a significant upward trend over the past five years. The return on total capital increased from 19.90% as of December 31, 2020, to 96.12% as of December 31, 2022, demonstrating a strong improvement in the company's ability to generate returns from its total capital. However, there was a slight decrease to 55.15% by December 31, 2024, which could indicate a potential slowdown in the company's efficiency in utilizing its total capital. Overall, AutoNation Inc's return on total capital remains relatively high, indicating that the company is effectively utilizing its capital to generate profits.
Peer comparison
Dec 31, 2024