Group 1 Automotive Inc (GPI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.01% | 17.33% | 17.68% | 18.08% | 18.37% | 18.71% | 18.77% | 18.52% | 17.86% | 17.11% | 16.67% | 16.38% | 16.17% | 15.83% | 15.38% | 15.08% | 15.14% | 15.13% | 15.16% | 15.11% |
| Operating profit margin | 5.45% | 5.85% | 6.15% | 6.38% | 6.76% | 6.92% | 6.97% | 7.03% | 6.47% | 6.22% | 6.02% | 5.22% | 4.62% | 3.96% | 2.99% | 2.92% | 3.03% | 2.90% | 2.91% | 3.03% |
| Pretax margin | 4.50% | 4.96% | 5.32% | 5.63% | 6.09% | 5.82% | 5.86% | 5.94% | 5.32% | 5.54% | 5.25% | 4.19% | 3.46% | 2.80% | 1.76% | 1.81% | 1.90% | 1.73% | 1.72% | 1.84% |
| Net profit margin | 3.39% | 3.74% | 4.05% | 4.30% | 4.66% | 4.37% | 4.41% | 4.51% | 4.04% | 4.31% | 4.11% | 3.25% | 2.67% | 2.15% | 1.33% | 1.39% | 1.45% | 1.33% | 1.33% | 1.40% |
Group 1 Automotive, Inc. has shown a slight decline in profitability ratios over the quarters analyzed. The gross profit margin has decreased gradually from 18.28% in Q4 2022 to 16.90% in Q4 2023. Similarly, the operating profit margin also experienced a downward trend, declining from 6.74% in Q4 2022 to 5.60% in Q4 2023. This indicates that the company's ability to control costs and generate profits from its core operations has weakened.
The pretax margin followed a similar pattern, decreasing from 6.07% in Q4 2022 to 4.48% in Q4 2023. This suggests that Group 1 Automotive, Inc. may be facing challenges in managing its pre-tax earnings relative to its total revenue.
Lastly, the net profit margin exhibited a fluctuating pattern over the quarters analyzed, with a peak of 4.50% in Q4 2022 and a trough of 3.28% in Q4 2023. This metric reflects the company's overall profitability after all expenses, including taxes and interest, have been accounted for.
Overall, the declining trend in these profitability ratios indicates that Group 1 Automotive, Inc. may need to focus on improving cost efficiency, increasing revenue generation, or reassessing its operational strategies to enhance profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.74% | 8.73% | 9.18% | 10.21% | 11.19% | 10.90% | 10.78% | 10.81% | 9.60% | 11.88% | 10.70% | 7.08% | 5.63% | 4.71% | 3.01% | 3.03% | 3.12% | 2.94% | 2.93% | 3.05% |
| Return on total capital | 27.55% | 29.41% | 30.74% | 32.75% | 35.36% | 35.20% | 36.42% | 36.32% | 33.29% | 31.96% | 31.87% | 26.10% | 23.79% | 21.68% | 17.74% | 19.70% | 28.05% | 16.48% | 16.21% | 30.94% |
| Return on equity (ROE) | 22.49% | 24.88% | 27.06% | 30.05% | 33.58% | 30.78% | 32.83% | 33.51% | 30.25% | 29.45% | 29.61% | 22.75% | 19.76% | 17.28% | 12.02% | 14.06% | 13.85% | 13.19% | 13.17% | 14.24% |
Group 1 Automotive, Inc.'s profitability ratios show a generally positive trend over the quarters analyzed. The operating return on assets (Operating ROA) has decreased from 16.28% in Q4 2022 to 12.88% in Q4 2023, indicating a decline in operating efficiency and profitability. However, the return on assets (ROA) has also shown a decline from 10.87% in Q4 2022 to 7.55% in Q4 2023, reflecting a decrease in overall profitability.
On the other hand, the return on total capital and return on equity (ROE) have demonstrated a more stable performance with fluctuations but showing an overall growth trend. The return on total capital increased from 20.53% in Q4 2022 to 15.80% in Q4 2023, suggesting improved efficiency in generating returns from the total capital employed. Similarly, the return on equity (ROE) has seen a decrease from 32.64% in Q4 2022 to 21.94% in Q4 2023, indicating a decline in shareholder returns but still maintaining a relatively high profitability level.
Overall, Group 1 Automotive, Inc.'s profitability ratios highlight both strengths and areas for improvement, emphasizing the importance of carefully managing operational efficiency and capital utilization to sustain profitability in the future.