Penske Automotive Group Inc (PAG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,726,200 | 4,148,000 | 4,070,000 | 3,302,500 | 2,793,400 |
| ROE | 22.28% | 33.27% | 29.18% | 16.46% | 15.60% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,053,200K ÷ $4,726,200K
= 22.28%
Penske Automotive Group Inc's return on equity (ROE) has exhibited varying trends over the past five years. The ROE decreased from 15.60% in 2019 to 16.46% in 2020, before experiencing a significant improvement to 29.18% in 2021. This positive momentum continued in 2022 with a further increase to 33.27%. However, in 2023, the ROE experienced a decline to 22.28%.
The fluctuations in ROE suggest that Penske Automotive Group Inc's profitability relative to its equity position has been volatile in recent years. The notable increase in ROE in 2021 and 2022 indicates improved efficiency in generating profits from shareholders' equity, while the decrease in 2023 may warrant further analysis to understand the underlying factors affecting profitability and shareholder returns. Overall, Penske Automotive Group Inc's ROE performance reflects a mix of strengths and potential areas for improvement in utilizing equity to drive profitability.
Peer comparison
Dec 31, 2023