Penske Automotive Group Inc (PAG)

Return on assets (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
Net income (ttm)	US$ in thousands	1,053,200	1,160,500	1,237,200	1,310,400	1,380,000	1,393,300	1,408,300	1,373,200	1,187,800	1,076,700	968,200	674,400	543,600	445,000	314,600	387,300	435,800	432,300	446,300	463,100
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
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%

December 31, 2023 calculation

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

The return on assets (ROA) of Penske Automotive Group Inc has been fluctuating over the past eight quarters. The trend shows a gradual decrease in ROA from Q1 2022 to Q4 2023. The ROA started at a relatively high level of 10.05% in Q1 2022, reaching its peak of 10.43% in Q2 2022, before decreasing consistently to 6.72% in Q4 2023.

While a decreasing trend in ROA may raise concerns about the company's ability to generate profits from its assets efficiently, it is essential to consider the reasons behind these fluctuations, such as changes in market conditions, operational efficiency, or strategic decisions made by the company.

Further analysis and comparison with industry benchmarks or competitors' ROA performance would provide valuable insights into Penske Automotive Group Inc's financial health and operational effectiveness.