AutoNation Inc (AN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,251,800 | 1,194,900 | 1,218,300 | 1,408,100 | 1,531,600 | 1,623,600 | 1,754,600 | 1,888,200 | 1,979,400 | 2,097,000 | 2,087,400 | 2,075,500 | 1,901,400 | 1,593,300 | 1,362,800 | 1,230,000 | 643,800 | 655,400 | 551,500 | 317,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 50.94% | 50.39% | 55.80% | 59.67% | 69.26% | 75.80% | 83.88% | 93.46% | 96.66% | 92.99% | 89.78% | 88.48% | 79.99% | 67.61% | 47.70% | 38.51% | 19.90% | 19.52% | 17.58% | 11.16% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,251,800K ÷ ($—K + $2,457,300K)
= 50.94%
AutoNation Inc's return on total capital has shown a fluctuating trend over the past few years. From March 2020 to December 2022, the return on total capital steadily increased from 11.16% to 96.66%, reflecting an improvement in the company's ability to generate returns from its total capital employed. However, starting from March 2023, there was a gradual decline in the return on total capital, dropping to 50.94% by December 2024.
The peak return on total capital was observed in June 2022 at 89.78%, indicating a period of strong performance for the company. Subsequently, there was a notable decrease in the return on total capital, reaching 50.39% by September 2024.
Overall, the return on total capital for AutoNation Inc has shown volatility and a recent downward trend after reaching its peak in mid-2022. It is important for investors and stakeholders to monitor this metric closely to assess the company's efficiency in utilizing its total capital resources to generate returns.
Peer comparison
Dec 31, 2024