Penske Automotive Group Inc (PAG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,053,200	1,380,000	1,187,800	543,600	435,800
Total assets	US$ in thousands	15,671,500	14,114,600	13,464,600	13,247,200	13,942,700
ROA		6.72%	9.78%	8.82%	4.10%	3.13%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,053,200K ÷ $15,671,500K
= 6.72%

Penske Automotive Group Inc's return on assets (ROA) has shown variability over the past five years, ranging from 3.13% in 2019 to 9.78% in 2022. The company's ROA decreased to 4.10% in 2020 before rebounding to 8.82% in 2021 and then declining again to 6.72% in 2023.

The fluctuation in ROA indicates changes in the company's efficiency in generating profits from its assets. A higher ROA suggests that Penske Automotive Group Inc is better at utilizing its assets to generate earnings, while a lower ROA signifies less effective asset management.

Overall, the upward and downward trends in ROA demonstrate the company's ability to adapt to changing market conditions and optimize asset utilization to drive profitability. It is important for investors and stakeholders to monitor these trends to assess the company's performance and investment potential.