Penske Automotive Group Inc (PAG)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,351,500	1,421,300	1,452,500	1,459,300	1,487,800	1,508,600	1,523,700	1,538,800	1,356,400	1,242,600	1,149,000	817,700	704,500	614,800	500,000	600,400	652,700	636,500	631,000	647,900
Total assets	US$ in thousands	15,671,500	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	13,942,700	13,689,500	13,361,100	13,574,900
Operating ROA		8.62%	9.60%	9.82%	10.14%	10.54%	11.10%	11.28%	11.26%	10.07%	9.77%	8.63%	6.18%	5.32%	4.73%	3.88%	4.35%	4.68%	4.65%	4.72%	4.77%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,351,500K ÷ $15,671,500K
= 8.62%

Penske Automotive Group Inc's operating return on assets (operating ROA) has shown a consistent decline over the past eight quarters, starting at 11.26% in Q1 2022 and reaching 8.88% in Q4 2023. This trend indicates a decreasing efficiency in generating operating profits from its assets over time. The company may be experiencing challenges in optimizing its asset utilization or managing its operating expenses effectively. It would be crucial for Penske Automotive Group Inc to closely monitor and address the factors contributing to this decline to improve its operational performance and profitability.