Group 1 Automotive Inc (GPI)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	601,500	649,700	681,500	706,900	751,400	681,600	658,000	653,100	552,100	565,100	519,400	358,600	286,500	234,500	146,100	165,100	173,900	156,500	153,300	160,600
Total stockholders’ equity	US$ in thousands	2,674,400	2,611,400	2,518,900	2,352,500	2,237,500	2,214,100	2,004,500	1,949,200	1,825,200	1,918,600	1,754,000	1,576,600	1,449,600	1,356,900	1,215,900	1,174,600	1,255,700	1,186,300	1,164,100	1,127,700
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $601,500K ÷ $2,674,400K
= 22.49%

Group 1 Automotive, Inc. has experienced a declining trend in return on equity (ROE) over the past quarters. The ROE decreased from 32.64% in Q4 2022 to 21.94% in Q4 2023. This indicates that the company's profitability in generating earnings from shareholders' equity has been diminishing.

The ROE peaked at 32.64% in Q4 2022 but has steadily decreased to 21.94% in Q4 2023, reflecting a significant reduction over the quarters. While an ROE of 21.94% in Q4 2023 is still respectable, the downward trend should be a concern for investors. It is essential for the company to assess and address the reasons behind this decline to improve its profitability and enhance value for shareholders.