Penske Automotive Group Inc (PAG)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,225,400	1,159,100	1,173,200	1,262,600	1,353,300	1,421,300	1,588,700	1,733,500	1,762,000	1,782,800	1,661,700	1,538,800	1,356,400	1,242,600	1,149,000	817,700	704,500	614,800	500,000	600,400
Total assets	US$ in thousands	16,720,900	17,065,400	16,633,500	16,146,500	16,401,300	14,810,000	14,796,900	14,395,800	14,114,600	13,588,100	13,504,100	13,665,900	13,464,600	12,719,300	13,306,800	13,222,000	13,247,200	13,009,700	12,876,100	13,816,800
Operating ROA		7.33%	6.79%	7.05%	7.82%	8.25%	9.60%	10.74%	12.04%	12.48%	13.12%	12.31%	11.26%	10.07%	9.77%	8.63%	6.18%	5.32%	4.73%	3.88%	4.35%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,225,400K ÷ $16,720,900K
= 7.33%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. For Penske Automotive Group Inc, the Operating ROA has shown a consistent upward trend from March 31, 2020, to December 31, 2022, peaking at 13.12% in September 30, 2022. This indicates the company's increased efficiency in utilizing its assets to generate operating income during this period.

However, from the peak in September 30, 2022, to December 31, 2024, the Operating ROA started declining gradually, reaching 7.33% by the end of December 31, 2024. This decline suggests a potential decrease in the company's operating profitability relative to its asset base during this period.

Overall, Penske Automotive Group Inc's Operating ROA performance reflects a period of improving profitability efficiency followed by a slight decline in recent periods. It is important for investors and stakeholders to closely monitor this ratio to assess the company's operational efficiency and profitability sustainability.