Group 1 Automotive Inc (GPI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 908,300 | 964,100 | 1,093,300 | 861,000 | 471,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,974,300 | 2,674,400 | 2,237,500 | 1,825,400 | 1,449,700 |
| Return on total capital | 30.54% | 36.05% | 48.86% | 47.17% | 32.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $908,300K ÷ ($—K + $2,974,300K)
= 30.54%
Group 1 Automotive Inc has shown a fluctuating trend in its return on total capital over the past five years. The return on total capital increased from 32.50% in December 2020 to 48.86% in December 2022, representing a substantial growth in profitability. However, there was a slight decline to 30.54% by December 2024.
Overall, the company has demonstrated strong efficiency in generating returns from its total capital base, with the return consistently remaining above 30% during the period under review. The company's ability to generate high returns on its total capital indicates effective capital utilization and operational performance. It would be beneficial for stakeholders to monitor future trends in the return on total capital to assess the company's financial health and profitability.
Peer comparison
Dec 31, 2024