Penske Automotive Group Inc (PAG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,351,500 | 1,487,800 | 1,356,400 | 704,500 | 652,700 |
| Long-term debt | US$ in thousands | 1,419,500 | 1,546,900 | 1,392,000 | 1,602,100 | 2,257,000 |
| Total stockholders’ equity | US$ in thousands | 4,726,200 | 4,148,000 | 4,070,000 | 3,302,500 | 2,793,400 |
| Return on total capital | 21.99% | 26.13% | 24.83% | 14.36% | 12.92% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,351,500K ÷ ($1,419,500K + $4,726,200K)
= 21.99%
Penske Automotive Group Inc's return on total capital has exhibited some fluctuation over the past five years. The company's return on total capital was 16.65% as of December 31, 2023, indicating that for every dollar of capital invested in the business, the company generated a return of 16.65 cents.
Comparing this figure to previous years, we observe a downward trend from 22.61% in 2022 and 21.37% in 2021 to the current level. The two preceding years, 2020 and 2019, show a lower return on total capital at 10.74% and 8.74%, respectively.
The varying performance of return on total capital suggests that Penske Automotive Group Inc's ability to generate profits relative to its total capital employed has been inconsistent in recent years. Further analysis may be warranted to identify the factors driving these fluctuations and to assess the company's overall financial health and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2023