Penske Automotive Group Inc (PAG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,517,500 | 1,645,200 | 1,487,800 | 1,356,400 | 704,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,209,800 | 4,726,200 | 4,174,800 | 4,095,000 | 3,326,100 |
| Return on total capital | 29.13% | 34.81% | 35.64% | 33.12% | 21.18% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,517,500K ÷ ($—K + $5,209,800K)
= 29.13%
Penske Automotive Group Inc's return on total capital has shown a positive trend over the past five years. The ratio increased steadily from 21.18% as of December 31, 2020, to 35.64% as of December 31, 2022, indicating the company's ability to generate returns on the total capital employed in its operations. However, there was a slight dip in the ratio to 29.13% by the end of December 31, 2024. Overall, Penske Automotive Group Inc has shown consistently strong performance in terms of utilizing its capital efficiently to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024