Penske Automotive Group Inc (PAG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,209,800	5,203,300	4,954,600	4,815,800	4,726,200	4,551,100	4,409,700	4,323,300	4,174,800	4,088,000	4,219,400	4,164,400	4,095,000	3,866,400	3,762,700	3,484,700	3,326,100	3,083,500	2,777,600	2,689,700
ROE		17.64%	16.78%	18.38%	20.14%	22.28%	25.50%	28.06%	30.31%	33.06%	34.08%	33.38%	32.97%	29.01%	27.85%	25.73%	19.35%	16.34%	14.43%	11.33%	14.40%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $918,900K ÷ $5,209,800K
= 17.64%

Penske Automotive Group Inc's return on equity (ROE) has shown fluctuating trends over the periods provided.

- ROE increased from 14.40% as of March 31, 2020, to a peak of 34.08% as of September 30, 2022. This indicates an improving profitability relative to the shareholders' equity during this period.

- However, the ROE started to decline after reaching the peak in September 2022. The ratio decreased to 17.64% as of December 31, 2024, which is still higher than the initial level in 2020 but signifies a drop in profitability efficiency in using shareholders' equity compared to the earlier periods.

- The highest ROE achieved was 34.08% on September 30, 2022, indicating the company was generating $0.34 in profit for every dollar of equity investment.

- Overall, although there were fluctuations, Penske Automotive Group Inc maintained ROE above the initial levels during the analyzed periods, suggesting a relatively efficient utilization of equity capital to generate profits.