Group 1 Automotive Inc (GPI)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	601,600	751,500	552,100	286,500	174,000
Total assets	US$ in thousands	7,774,100	6,717,500	5,749,400	5,089,400	5,570,200
ROA		7.74%	11.19%	9.60%	5.63%	3.12%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $601,600K ÷ $7,774,100K
= 7.74%

The return on assets (ROA) for Group 1 Automotive, Inc. has shown a positive trend over the past five years, increasing from 3.01% in 2019 to 7.55% in 2023. This indicates that the company has been more effective in generating profits from its assets over time.

The ROA of 10.87% in 2022 was the highest during the period, suggesting that the company was able to utilize its assets efficiently to generate a higher return compared to the other years. The ROA decreased slightly to 9.28% in 2021 but remained relatively strong.

In 2020, the ROA was 5.43%, showing a moderate increase from the previous year. This indicates that Group 1 Automotive improved its asset utilization to generate higher returns despite challenges faced during that time.

Overall, the increasing trend in ROA reflects positively on Group 1 Automotive's ability to generate profits relative to its total assets, indicating improved efficiency in asset utilization and potentially better financial performance.