Group 1 Automotive Inc (GPI)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	917,700	947,200	979,300	1,011,700	1,005,300	1,019,500	1,020,000	1,024,000	1,064,900	1,057,400	1,026,800	1,005,900	881,500	801,700	746,500	593,900	511,000	467,100	363,243	356,783
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		30.86%	31.83%	34.17%	36.49%	37.59%	39.04%	40.49%	43.53%	47.59%	47.76%	51.22%	51.60%	48.29%	41.79%	42.56%	37.67%	35.25%	34.42%	29.87%	30.37%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $917,700K ÷ ($—K + $2,974,100K)
= 30.86%

Group 1 Automotive Inc's return on total capital has shown a generally positive trend over the period analyzed. It started at 30.37% in March 2020 and steadily increased to reach a peak of 51.60% in March 2022. However, after reaching this peak, the return on total capital has shown a gradual decline, dropping to 30.86% by December 2024.

Overall, the company has maintained a strong return on total capital throughout the period, indicating its ability to generate profits from the capital invested in the business. The fluctuations observed may be influenced by various factors such as changes in the company's operational efficiency, capital structure, profitability, and overall market conditions. Investors and stakeholders should continue to monitor these metrics to assess the company's financial performance and sustainability.