Group 1 Automotive Inc (GPI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 909,100 | 968,600 | 1,091,400 | 884,400 | 486,100 |
| Total assets | US$ in thousands | 9,824,200 | 7,774,100 | 6,717,500 | 5,749,400 | 5,089,400 |
| Operating ROA | 9.25% | 12.46% | 16.25% | 15.38% | 9.55% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $909,100K ÷ $9,824,200K
= 9.25%
Group 1 Automotive Inc's operating return on assets (operating ROA) has shown some fluctuations over the years. It increased from 9.55% on December 31, 2020, to 15.38% on December 31, 2021, indicating improved efficiency in generating operating profits from its assets. This positive trend continued into 2022, where the operating ROA further increased to 16.25%, suggesting enhanced operational effectiveness.
However, on December 31, 2023, there was a slight decline in the operating ROA to 12.46%, possibly indicating a temporary dip in profitability relative to its asset base. Finally, by December 31, 2024, the operating ROA decreased further to 9.25%, signaling a potential challenge in maintaining profitability levels in generating operating income from its assets.
Overall, these fluctuations in Group 1 Automotive Inc's operating ROA highlight the importance of closely monitoring the company's operational efficiency and asset utilization to sustain and improve financial performance in the future.
Peer comparison
Dec 31, 2024