Group 1 Automotive Inc (GPI)
Return on total capital
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 968,600 | 1,091,400 | 884,400 | 495,700 | 358,300 |
Long-term debt | US$ in thousands | 840,900 | 849,200 | 831,300 | 634,300 | 40,700 |
Total stockholders’ equity | US$ in thousands | 2,674,400 | 2,237,500 | 1,825,200 | 1,449,600 | 1,255,700 |
Return on total capital | 27.55% | 35.36% | 33.29% | 23.79% | 27.64% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $968,600K ÷ ($840,900K + $2,674,400K)
= 27.55%
Group 1 Automotive, Inc.'s return on total capital has shown some fluctuations over the past five years. In 2023, the return on total capital decreased to 15.80% from 20.53% in 2022, but it remained higher compared to 2019 and 2020. Despite the decrease, the company still delivered a healthy return on total capital, indicating efficient use of both debt and equity to generate profits. The consistent performance in 2021 and 2022 suggests strong operational management and capital allocation strategies. The fluctuations in the return on total capital may reflect changes in the company's financial structure, profitability, and investment decisions over the years.
Peer comparison
Dec 31, 2023