AutoNation (FRA:RWI) ROCE % : 21.32% (As of Mar. 2024)

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What is AutoNation ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. AutoNation's annualized ROCE % for the quarter that ended in Mar. 2024 was 21.32%.

AutoNation ROCE % Historical Data

The historical data trend for AutoNation's ROCE % 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.

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AutoNation ROCE % Chart

AutoNation Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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16.60

12.12

34.42

33.03

25.31

AutoNation Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															26.97	26.62	24.97	22.32	21.32

AutoNation ROCE % Calculation

AutoNation's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1537.167	/	( ( (9496.357 - 3214.981)	+	(10985.66 - 5119.152) )	/ 2 )
	=	1537.167	/	( (6281.376	+	5866.508)	/ 2 )
	=	1537.167	/	6073.942
	=	25.31 %

AutoNation's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	1278.064	/	( ( (10985.66 - 5119.152)	+	(11077.996 - 4953.556) )	/ 2 )
	=	1278.064	/	( ( 5866.508	+	6124.44 )	/ 2 )
	=	1278.064	/	5995.474
	=	21.32 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

AutoNation (FRA:RWI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

AutoNation ROCE % Related Terms

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AutoNation (FRA:RWI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » AutoNation Inc (FRA:RWI) » Definitions » ROCE %

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AN:USA

Address

200 SW 1st Avenue, Fort Lauderdale, FL, USA, 33301

Website

https://www.autonation.com

AutoNation is the second largest automotive dealer in the United States, with 2022 revenue of $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 16 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

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