Penske Automotive Group Inc (PAG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	4,726,200	4,523,400	4,382,100	4,323,300	4,148,000	4,063,500	4,194,800	4,138,800	4,070,000	3,842,100	3,738,700	3,462,200	3,302,500	3,064,300	2,759,900	2,689,700	2,793,400	2,638,900	2,640,500	2,641,200
ROE		22.28%	25.66%	28.23%	30.31%	33.27%	34.29%	33.57%	33.18%	29.18%	28.02%	25.90%	19.48%	16.46%	14.52%	11.40%	14.40%	15.60%	16.38%	16.90%	17.53%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,053,200K ÷ $4,726,200K
= 22.28%

Penske Automotive Group Inc's Return on Equity (ROE) has exhibited a decreasing trend over the past few quarters, dropping from 33.27% in Q4 2022 to 22.28% in Q4 2023. This declining ROE may signify a reduction in the company's ability to generate profits from shareholders' equity. Although the ROE figures still remain relatively healthy, the consistent decrease warrants a closer examination of the company's profitability and efficiency in utilizing its equity. Further analysis of the underlying factors affecting the ROE, such as changes in profitability, asset management, or leverage, could provide insights into Penske Automotive Group Inc's financial performance and potential opportunities for improvement.