What is Group 1 Automotive Return-on-Tangible-Asset?
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Group 1 Automotive's annualizedNet Income for the quarter that ended in Mar. 2024 was $592 Mil. Group 1 Automotive's average total tangible assets for the quarter that ended in Mar. 2024 was $5,571 Mil. Therefore, Group 1 Automotive's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was 10.62%.
The historical rank and industry rank for Group 1 Automotive's Return-on-Tangible-Asset or its related term are showing as below:
GPI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.01 Med: 5.31 Max: 17.73
Current: 11.99
During the past 13 years, Group 1 Automotive's highest Return-on-Tangible-Asset was 17.73%. The lowest was 3.01%. And the median was 5.31%.
GPI's Return-on-Tangible-Asset is ranked better than 91.4% of 1302
companies
in the Vehicles & Parts industry
Industry Median: 3.515
vs GPI: 11.99
Group 1 Automotive Return-on-Tangible-Asset Historical Data
The historical data trend for Group 1 Automotive's Return-on-Tangible-Asset 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.
Competitive Comparison of Group 1 Automotive's Return-on-Tangible-Asset
For the Auto & Truck Dealerships subindustry, Group 1 Automotive's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Group 1 Automotive's Return-on-Tangible-Asset Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Group 1 Automotive's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Group 1 Automotive's Return-on-Tangible-Asset falls into.
Group 1 Automotive Return-on-Tangible-Asset Calculation
Group 1 Automotive's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2024) net income data.
Group 1 Automotive (NYSE:GPI) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Group 1 Automotive Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Group 1 Automotive's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Group 1 Automotive (Group 1 Automotive) Business Description
Group 1 owns and operates 41 collision centers and 201 automotive dealerships in the U.S. and the U.K., offering 35 brands of automobiles altogether. About 150 of the stores are in the U.S. with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 37% of new-vehicle unit volume in 2022 and the U.K. about 19%. Texas, Oklahoma, and Massachusetts combined were about 53%. Revenue in 2022 totaled $16.2 billion. The company was founded in 1995 and is based in Houston.
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