Group 1 Automotive Inc (GPI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.26% | 16.90% | 18.28% | 18.10% | 16.30% |
| Operating profit margin | 4.56% | 5.42% | 6.73% | 6.56% | 4.48% |
| Pretax margin | 3.30% | 4.48% | 6.07% | 5.94% | 3.41% |
| Net profit margin | 2.50% | 3.37% | 4.63% | 4.10% | 2.64% |
Group 1 Automotive Inc's profitability ratios over the five-year period show some fluctuations. The Gross Profit Margin, which represents the percentage of revenue retained as gross profit after accounting for cost of goods sold, increased from 16.30% in 2020 to 18.10% in 2021 before a slight further increase to 18.28% in 2022. However, in 2023 and 2024, the Gross Profit Margin decreased to 16.90% and 16.26%, respectively.
The Operating Profit Margin, indicating the percentage of revenue left after covering operating expenses, showed a similar trend. It rose from 4.48% in 2020 to 6.56% in 2021 and further to 6.73% in 2022. Nevertheless, it declined to 5.42% in 2023 and 4.56% in 2024.
The Pretax Margin, representing the percentage of revenue that converts to pre-tax income, demonstrated an increase from 3.41% in 2020 to 5.94% in 2021 and 6.07% in 2022. However, it dropped to 4.48% in 2023 and 3.30% in 2024.
Lastly, the Net Profit Margin, which shows the percentage of revenue that remains as net income after all expenses, increased from 2.64% in 2020 to 4.10% in 2021 and 4.63% in 2022 but then decreased to 3.37% in 2023 and 2.50% in 2024.
Overall, while the company experienced some fluctuations in its profitability ratios, it generally saw an improvement in margins until a slight decline in the most recent year, indicating the need to potentially address cost management and operational efficiency to sustain profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.25% | 12.46% | 16.25% | 15.38% | 9.55% |
| Return on assets (ROA) | 5.07% | 7.74% | 11.19% | 9.60% | 5.63% |
| Return on total capital | 30.54% | 36.05% | 48.86% | 47.17% | 32.50% |
| Return on equity (ROE) | 16.75% | 22.49% | 33.59% | 30.25% | 19.76% |
Group 1 Automotive Inc's profitability ratios have shown fluctuations over the five-year period from 2020 to 2024.
- Operating return on assets (Operating ROA) has generally been on an upward trend, improving from 9.55% in 2020 to 16.25% in 2022, before declining slightly to 12.46% in 2023 and further dropping to 9.25% in 2024. This ratio indicates the company's ability to generate profits from its core operations relative to its total assets.
- Return on assets (ROA) follows a similar pattern, starting at 5.63% in 2020 and peaking at 11.19% in 2022, before decreasing to 5.07% in 2024. ROA reflects the company's efficiency in utilizing its assets to generate profits.
- Return on total capital shows a strong performance, with a steady increase from 32.50% in 2020 to 48.86% in 2022, before declining to 30.54% in 2024. This ratio measures the company's ability to generate profits from all sources of capital employed in the business.
- Return on equity (ROE) also exhibits growth, rising from 19.76% in 2020 to 33.59% in 2022, then dropping to 16.75% in 2024. ROE reflects the return that the company generates on shareholders' equity investment.
Overall, Group 1 Automotive Inc's profitability ratios indicate varying levels of performance over the years, with some ratios showing improvement and others experiencing declines. Investors and stakeholders may monitor these ratios to assess the company's profitability and efficiency in generating returns.