Group 1 Automotive Inc (GPI)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	968,600	1,015,900	1,034,200	1,047,900	1,091,400	1,079,100	1,040,700	1,018,700	884,400	814,400	760,000	576,500	495,700	432,500	328,700	346,800	363,700	341,900	336,800	348,900
Total assets	US$ in thousands	7,774,100	7,439,600	7,424,600	6,923,200	6,717,500	6,251,500	6,102,800	6,039,600	5,749,400	4,757,600	4,855,900	5,065,100	5,089,400	4,983,400	4,859,600	5,441,100	5,570,200	5,329,000	5,225,760	5,263,490
Operating ROA		12.46%	13.66%	13.93%	15.14%	16.25%	17.26%	17.05%	16.87%	15.38%	17.12%	15.65%	11.38%	9.74%	8.68%	6.76%	6.37%	6.53%	6.42%	6.44%	6.63%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $968,600K ÷ $7,774,100K
= 12.46%

Based on the provided data, Group 1 Automotive, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the last eight quarters. The operating ROA decreased from 16.28% in Q4 2022 to 12.88% in Q4 2023. This indicates a decrease in the company's ability to generate operating profits from its assets.

The decreasing trend in operating ROA could be a cause for concern as it suggests that Group 1 Automotive, Inc. may be facing challenges in effectively utilizing its assets to generate operating income. It is important for the company to closely monitor and analyze the factors contributing to this decline in order to identify and address any inefficiencies in its operational performance.

Overall, a declining trend in operating ROA may signal potential issues with the company's operational efficiency and profitability, highlighting the need for management to take proactive measures to improve performance and enhance the utilization of its assets. Tracking this ratio over time will be crucial in assessing the effectiveness of the company's asset management strategies and identifying areas for improvement.