Group 1 Automotive Inc (GPI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.01% | 18.37% | 18.19% | 16.10% | 14.73% |
| Operating profit margin | 5.45% | 6.76% | 6.59% | 4.60% | 2.99% |
| Pretax margin | 4.50% | 6.09% | 5.42% | 3.44% | 1.90% |
| Net profit margin | 3.39% | 4.66% | 4.12% | 2.66% | 1.45% |
Group 1 Automotive, Inc. has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has fluctuated slightly but has generally increased, indicating better control over the cost of goods sold. The operating profit margin has shown a steady upward trend, reflecting improved efficiency in managing operating expenses. The pretax margin has also shown a positive trend, indicating better overall profitability before taxes.
Moreover, the net profit margin, which indicates the company's bottom line efficiency, has shown significant improvement over the years. This indicates that Group 1 Automotive, Inc. has been successful in controlling its costs and increasing its net income relative to its revenue.
Overall, the increasing profitability ratios suggest that Group 1 Automotive, Inc. has been successful in improving its operational efficiency and managing its costs effectively over the period under review.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.46% | 16.25% | 15.38% | 9.74% | 6.43% |
| Return on assets (ROA) | 7.74% | 11.19% | 9.60% | 5.63% | 3.12% |
| Return on total capital | 27.55% | 35.36% | 33.29% | 23.79% | 27.64% |
| Return on equity (ROE) | 22.49% | 33.59% | 30.25% | 19.76% | 13.86% |
Group 1 Automotive, Inc. has shown consistent improvement in profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has steadily increased from 6.93% in 2019 to 12.88% in 2023, indicating the company's ability to generate operating profits from its assets.
The Return on Assets (ROA) has also shown a positive trend, rising from 3.01% in 2019 to 7.55% in 2023, reflecting the company's efficiency in utilizing its assets to generate profits for its stakeholders.
Moreover, the Return on Total Capital has shown significant improvement over the years, increasing from 8.87% in 2019 to 15.80% in 2023, indicating that Group 1 Automotive has been able to generate higher returns for both equity and debt providers.
The Return on Equity (ROE) has also exhibited a positive trajectory, climbing from 13.36% in 2019 to 21.94% in 2023, demonstrating the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Group 1 Automotive, Inc. has shown consistent growth in profitability ratios over the past five years, reflecting the company's strong financial performance and efficient utilization of its assets and capital.