Group 1 Automotive Inc (GPI)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 495,800 509,700 558,700 591,000 601,600 649,800 681,700 707,100 751,500 681,700 658,000 653,100 552,100 565,100 519,400 358,600 286,500 234,500 146,100 165,125
Total stockholders’ equity US$ in thousands 2,974,100 2,976,200 2,866,300 2,772,400 2,674,400 2,611,400 2,518,900 2,352,500 2,237,600 2,214,100 2,004,500 1,949,300 1,825,400 1,918,600 1,754,000 1,576,700 1,449,700 1,357,000 1,216,000 1,174,700
ROE 16.67% 17.13% 19.49% 21.32% 22.49% 24.88% 27.06% 30.06% 33.59% 30.79% 32.83% 33.50% 30.25% 29.45% 29.61% 22.74% 19.76% 17.28% 12.01% 14.06%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $495,800K ÷ $2,974,100K
= 16.67%

Group 1 Automotive Inc's return on equity (ROE) has displayed fluctuating trends over the past few years. Starting at 14.06% in March 2020, the ROE showed a slight decline to 12.01% by June 2020. However, from thereon, the ROE exhibited a positive trajectory, reaching 33.59% by December 2022, showcasing strong profitability.

Following this peak, the ROE started to experience a gradual decrease, falling to 16.67% by December 2024. The company experienced a significant drop in ROE in 2023, reaching as low as 21.32% in March 2024, and continuing on a downward trend until the end of 2024.

Overall, despite the fluctuations, Group 1 Automotive Inc's ROE remained relatively healthy throughout the period. Investors may want to closely monitor the factors contributing to the decline in ROE to assess the company's future profitability and operational efficiency.