Penske Automotive Group Inc (PAG)

Return on assets (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
Net income (ttm)	US$ in thousands	918,900	873,200	910,500	970,100	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
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
ROA		5.50%	5.12%	5.47%	6.01%	6.42%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $918,900K ÷ $16,720,900K
= 5.50%

Penske Automotive Group Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA was 2.80% as of March 31, 2020, and it increased to 5.10% by March 31, 2021, showing a significant improvement in the company's asset utilization efficiency. The ROA continued to rise steadily, reaching its peak at 10.43% on June 30, 2022.

However, after reaching the peak, the ROA started to decline gradually, dropping to 5.12% by September 30, 2024. This decrease indicates a potential decrease in the company's efficiency in generating profits from its assets. Despite the decline, the ROA remains above the levels seen earlier in the period.

Overall, Penske Automotive Group Inc's ROA performance indicates periods of strong asset utilization efficiency, followed by a recent decline. Management may need to focus on optimizing asset utilization to sustain or improve ROA levels in the future.