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.