Penske Automotive Group Inc (PAG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,316,800 | 1,351,500 | 1,487,800 | 1,356,400 | 704,500 |
| Total assets | US$ in thousands | 16,720,900 | 15,671,500 | 14,114,600 | 13,464,600 | 13,247,200 |
| Operating ROA | 7.88% | 8.62% | 10.54% | 10.07% | 5.32% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,316,800K ÷ $16,720,900K
= 7.88%
Penske Automotive Group Inc's operating return on assets (operating ROA) has shown a positive trend over the years based on the provided data.
As of December 31, 2020, the operating ROA was at 5.32%, indicating that the company generated $0.0532 in operating income for every dollar of assets employed during that period.
Subsequently, the operating ROA increased to 10.07% as of December 31, 2021, and further to 10.54% by December 31, 2022, reflecting a significant improvement in efficiency and profitability in utilizing its assets to generate operating income.
However, by the end of December 31, 2023, the operating ROA saw a slight decline to 8.62%, suggesting a potential decrease in asset efficiency or profitability relative to the previous year.
Finally, as of December 31, 2024, the operating ROA decreased further to 7.88%, indicating that the company may be experiencing challenges in maintaining or improving its operating performance relative to its asset base.
Overall, the trend of Penske Automotive Group Inc's operating ROA showcases both periods of strong performance and some fluctuations, highlighting the importance of monitoring asset efficiency and profitability to ensure sustainable financial health.
Peer comparison
Dec 31, 2024