Group 1 Automotive Inc (GPI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 498,100 | 601,600 | 751,500 | 552,100 | 286,500 |
| Total assets | US$ in thousands | 9,824,200 | 7,774,100 | 6,717,500 | 5,749,400 | 5,089,400 |
| ROA | 5.07% | 7.74% | 11.19% | 9.60% | 5.63% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $498,100K ÷ $9,824,200K
= 5.07%
Group 1 Automotive Inc's return on assets (ROA) has shown fluctuations over the analyzed period. The ROA increased from 5.63% as of December 31, 2020, to 9.60% as of December 31, 2021, indicating improved efficiency in generating profits relative to its total assets. Subsequently, the ROA continued to rise to 11.19% as of December 31, 2022, reflecting further enhanced asset utilization. However, there was a slight decline to 7.74% as of December 31, 2023, and a more noticeable decrease to 5.07% as of December 31, 2024. These declines suggest a potential decrease in profit generation relative to its asset base. It is important for Group 1 Automotive Inc to closely monitor and manage its asset utilization to sustain and improve its ROA in the future.
Peer comparison
Dec 31, 2024