Asbury Automotive Group (Asbury Automotive Group) Operating Income : $1,057 Mil (TTM As of Dec. 2023)

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What is Asbury Automotive Group Operating Income?

Asbury Automotive Group's Operating Income for the three months ended in Dec. 2023 was $242 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,057 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Asbury Automotive Group's Operating Income for the three months ended in Dec. 2023 was $242 Mil. Asbury Automotive Group's Revenue for the three months ended in Dec. 2023 was $3,812 Mil. Therefore, Asbury Automotive Group's Operating Margin % for the quarter that ended in Dec. 2023 was 6.34%.

Good Sign:

Asbury Automotive Group Inc operating margin is expanding. Margin expansion is usually a good sign.

Asbury Automotive Group's 5-Year average Growth Rate for Operating Margin % was 13.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Asbury Automotive Group's annualized ROC % for the quarter that ended in Dec. 2023 was 8.20%. Asbury Automotive Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 12.38%.

Asbury Automotive Group Operating Income Historical Data

The historical data trend for Asbury Automotive Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Asbury Automotive Group Operating Income Chart

Asbury Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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332.10

393.80

791.80

1,272.60

1,070.70

Asbury Automotive Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															276.40	287.80	264.80	241.80	262.70

Asbury Automotive Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,057 Mil.

Asbury Automotive Group (NYSE:ABG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Asbury Automotive Group's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	967.2 * ( 1 - 26.59% )	/	( (7604.2	+	9713.4)	/ 2 )
=	710.02152	/	8658.8
=	8.20 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8255	-	601.8	-	( 49	-	max(0, 994.5	-	2054.9	+	49	))
=	7604.2

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10159.4	-	394.1	-	( 51.9	-	max(0, 2875.7	-	3057.1	+	51.9	))
=	9713.4

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Asbury Automotive Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	498	/	( ( (2191.1 + max(1177.5, 0))	+	(2557.4 + max(2120.9, 0)) )	/	2 )
=	498	/	( ( 3368.6	+	4678.3 )	/	2 )
=	498	/	4023.45
=	12.38 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(379.8	+	1242.1	+	384)	-	(601.8	+	226.7	+	-0.099999999999909)
=	1177.5

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(420.2	+	1768.3	+	672.2)	-	(394.1	+	272.9	+	72.8)
=	2120.9

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Asbury Automotive Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	241.8	/	3811.7
	=	6.34 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Asbury Automotive Group Operating Income Related Terms

Thank you for viewing the detailed overview of Asbury Automotive Group's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Asbury Automotive Group (Asbury Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Asbury Automotive Group Inc (NYSE:ABG) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

AWG:Germany

Address

2905 Premiere Parkway North West, Suite 300, Duluth, GA, USA, 30097

Website

https://www.asburyauto.com

Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates 138 new-vehicle stores, seven used-vehicle stores, and 32 collision centers. Over 70% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products and its own F&I products via Total Care Auto. Asbury operates in 14 states (mostly Texas, the West, and the Southeast). Asbury store brands include David McDavid and Park Place in Texas, and the Larry H. Miller brand in the Western U.S. It plans to acquire Koons in the Washington, D.C. area in late 2023 or early 2024. Asbury generated $15.4 billion of revenue in 2022 and is based in the Atlanta area. The firm targets about $32 billion in 2025.

Executives

Daniel Clara	officer: SVP, Operations	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Philip F Maritz	director	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
George A Villasana	officer: VP & General Counsel	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Miran Maric	officer: SVP, Strategy & Innovation	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Bridget Ryan Berman	director	161 FALCON ROAD, GUILFORD CT 06437
David W Hult	officer: EVP & COO	800 GESSNER, SUITE 500, HOUSTON TX 77024
Jed Milstein	officer: VP & CHRO	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Nathan Edward Briesemeister	officer: VP, Controller & CAO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Terry Hilliard C. Iii	director	ONE SW COLUMBIA ST STE 1200, PORTLAND OR 97258
Michael Welch	officer: SVP & CFO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
David C Abrams	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Partners Ii, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital, Llc	10 percent owner	222 BERKELEY ST., 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, Llc	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116