Penske Automotive Group Inc (PAG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.75% | 16.88% | 17.07% | 17.27% | 17.41% | 17.84% | 18.03% | 17.77% | 17.36% | 16.61% | 16.11% | 15.67% | 15.59% | 15.35% | 14.94% | 14.95% | 14.91% | 14.95% | 15.08% | 15.05% |
| Operating profit margin | 4.59% | 4.87% | 5.07% | 5.19% | 5.35% | 5.57% | 5.71% | 5.75% | 5.30% | 4.96% | 4.68% | 3.86% | 3.45% | 2.99% | 2.44% | 2.65% | 2.82% | 2.80% | 2.81% | 2.87% |
| Pretax margin | 4.80% | 5.32% | 5.80% | 6.26% | 6.67% | 6.93% | 7.07% | 6.92% | 6.27% | 5.77% | 5.23% | 4.16% | 3.46% | 2.84% | 2.10% | 2.34% | 2.56% | 2.55% | 2.58% | 2.63% |
| Net profit margin | 3.58% | 3.97% | 4.31% | 4.66% | 4.96% | 5.14% | 5.28% | 5.13% | 4.64% | 4.30% | 3.95% | 3.18% | 2.66% | 2.17% | 1.53% | 1.71% | 1.88% | 1.90% | 1.99% | 2.05% |
Penske Automotive Group Inc's profitability ratios exhibit certain trends based on the data provided. The gross profit margin has shown a slight decrease over the quarters, indicating a slight decline in the efficiency of the company in generating gross profit from sales. However, the gross profit margin remains relatively stable within a narrow range of 16.71% to 17.40%, indicating consistent cost controls and pricing strategies.
The operating profit margin has also seen a gradual decline over the quarters, which suggests that the company's operating expenses may be increasing at a faster rate than its operating income. This could be an area of concern for management as it may impact overall profitability.
Similarly, the pretax margin has shown a decreasing trend, indicating that the company's pre-tax earnings are also being impacted by rising expenses or other operational challenges. This trend is consistent with the decline seen in the operating profit margin.
The net profit margin, which is a key indicator of the company's overall profitability, has also shown a downward trend over the quarters. This suggests that after accounting for all expenses, including taxes, the company's bottom line is being affected, potentially indicating the need for further cost-cutting measures or efficiency improvements.
Overall, while Penske Automotive Group Inc has maintained relatively stable profitability margins over the quarters, the declining trends observed in the operating profit margin, pretax margin, and net profit margin may warrant a closer look at the company's cost structure and operational efficiency to sustain and improve profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.72% | 7.84% | 8.36% | 9.10% | 9.78% | 10.25% | 10.43% | 10.05% | 8.82% | 8.47% | 7.28% | 5.10% | 4.10% | 3.42% | 2.44% | 2.80% | 3.13% | 3.16% | 3.34% | 3.41% |
| Return on total capital | 21.99% | 23.45% | 24.23% | 24.55% | 26.13% | 26.82% | 27.20% | 27.86% | 24.83% | 23.90% | 22.20% | 16.50% | 14.36% | 11.64% | 10.39% | 11.53% | 12.92% | 12.93% | 13.22% | 13.61% |
| Return on equity (ROE) | 22.28% | 25.66% | 28.23% | 30.31% | 33.27% | 34.29% | 33.57% | 33.18% | 29.18% | 28.02% | 25.90% | 19.48% | 16.46% | 14.52% | 11.40% | 14.40% | 15.60% | 16.38% | 16.90% | 17.53% |
Penske Automotive Group Inc's profitability ratios show a consistent trend of positive performance over the past eight quarters.
Operating return on assets (Operating ROA) has ranged from 8.88% to 11.28% over this period, indicating that the company generates profits efficiently from its assets used in operations.
Return on assets (ROA) has ranged from 6.72% to 10.05%, showing the company's ability to generate earnings relative to its total assets.
Return on total capital has ranged from 16.65% to 24.56%, signifying the returns generated on all capital invested in the business.
Return on equity (ROE) has ranged from 22.28% to 34.29%, reflecting the returns earned on the shareholders' equity investment in the company.
Overall, Penske Automotive Group Inc has demonstrated strong profitability ratios, showing efficient asset utilization and solid returns on investment for shareholders across the quarters analyzed.