Penske Automotive Group Inc (PAG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,385,400 | 1,305,300 | 1,258,700 | 1,301,500 | 1,474,300 | 1,503,400 | 1,534,600 | 1,541,400 | 1,487,800 | 1,508,600 | 1,523,700 | 1,538,800 | 1,356,400 | 1,242,600 | 1,149,000 | 817,700 | 704,500 | 614,800 | 500,000 | 600,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 26.59% | 25.09% | 25.40% | 27.03% | 31.19% | 33.03% | 34.80% | 35.65% | 35.64% | 36.90% | 36.11% | 36.95% | 33.12% | 32.14% | 30.54% | 23.47% | 21.18% | 19.94% | 18.00% | 22.32% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,385,400K ÷ ($—K + $5,209,800K)
= 26.59%
Penske Automotive Group Inc's return on total capital has shown fluctuations over the period analyzed. The return on total capital increased from March 31, 2020, at 22.32% to a peak of 36.95% on March 31, 2022, before experiencing a downward trend. It dipped to 25.09% on September 30, 2024, and then slightly recovered to 26.59% by December 31, 2024.
Overall, Penske Automotive Group Inc's return on total capital has been relatively strong, consistently above 20% for most of the period. However, there was a notable decline in the most recent quarters, indicating a potential decrease in efficiency in generating profits from its capital investments. It would be essential for the company to closely monitor and manage its capital allocation and operational efficiency to sustain or improve its return on total capital going forward.
Peer comparison
Dec 31, 2024