Group 1 Automotive Inc (GPI)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,974,300 2,674,400 2,237,500 1,825,400 1,449,700
ROE 16.75% 22.49% 33.59% 30.25% 19.76%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $498,100K ÷ $2,974,300K
= 16.75%

The return on equity (ROE) for Group 1 Automotive Inc has shown variations over the past five years. In December 2020, the ROE was 19.76%, indicating a decent return on shareholder's equity. By December 2021, the ROE had increased significantly to 30.25%, reflecting a more profitable use of equity investments. In the following year, the ROE continued to improve, reaching 33.59% by December 2022, signaling an even greater efficiency in generating profits relative to shareholder's equity.

However, by December 2023, the ROE declined to 22.49%, suggesting a slight decrease in profitability compared to the previous year. This could be due to various factors such as changes in market conditions or company performance. By December 2024, the ROE further decreased to 16.75%, indicating a notable decline in the company's ability to generate profits from shareholders' equity.

Overall, while Group 1 Automotive Inc has shown strong ROE performance in recent years, it is important to monitor the trend closely to understand the factors driving these fluctuations and assess the company's long-term profitability and efficiency in utilizing shareholder's equity.