AutoNation Inc (AN)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,651,900 1,726,900 1,829,900 1,948,800 2,024,500 2,132,000 2,112,800 2,084,900 1,902,800 1,679,800 1,448,200 1,119,400 563,200 489,600 411,400 413,500 823,600 785,100 795,200 782,900
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Return on total capital 74.70% 80.62% 87.48% 96.46% 98.86% 94.54% 90.87% 88.89% 80.05% 71.28% 50.69% 35.05% 17.41% 14.58% 13.11% 14.52% 26.05% 26.20% 27.58% 28.10%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,651,900K ÷ ($—K + $2,211,400K)
= 74.70%

Autonation Inc.'s return on total capital has shown a decreasing trend from Q1 2022 to Q4 2023, with values declining from 28.31% to 16.78% during this period. This suggests a potential decline in the company's efficiency in generating profits from its total capital investments over time. The company's return on total capital peaked in Q1 2023 at 23.56% but has since continued to decrease. This trend may indicate changes in the company's operational performance or capital structure that could be affecting its profitability and overall financial health. Further analysis of the company's financial statements and operations would be necessary to understand the factors driving this trend in return on total capital.