The business behind the dividend
| Measure | GPI | Median | Formula |
|---|---|---|---|
| Return on equity | 11.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.8% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $424.50m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 3.3% | 14.3% | Operating income ÷ revenue |
| Net margin | 1.4% | 10.1% | Net income ÷ revenue |
| Debt to equity | 1.23x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.74x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.08x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 13.26x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.14x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -3.6% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Owner earnings — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 11.7% | 16.7% | 22.5% | 33.6% | 30.2% | 19.8% | 13.9% | 14.4% | 19.0% | 15.8% | 16.7% |
| Return on capital employed | 11.8% | 15.9% | 20.8% | 26.0% | 24.3% | 18.2% | 13.3% | 14.3% | 14.0% | 15.9% | 15.9% |
| Operating margin | 3.3% | 4.6% | 5.4% | 6.7% | 6.6% | 4.7% | 3.1% | 2.9% | 3.1% | 3.1% | 3.3% |
| Net margin | 1.4% | 2.5% | 3.4% | 4.6% | 4.1% | 2.7% | 1.5% | 1.4% | 1.9% | 1.4% | 1.9% |
| Debt to equity | 1.23x | 0.92x | 0.74x | 0.87x | 0.99x | 0.88x | 1.14x | 1.17x | 1.17x | 1.30x | 0.99x |
| Current ratio | 1.08x | 1.03x | 1.11x | 1.03x | 1.08x | 1.09x | 1.04x | 1.01x | 1.06x | 1.05x | 1.05x |
| Cash conversion | 2.14x | 1.18x | 0.32x | 0.78x | 2.28x | 2.81x | 2.13x | 1.71x | 0.92x | 2.61x | 1.71x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, Group 1 Automotive pays out less than 158 of them. The median for that group is 33.1%, against this company’s 6.0%.
Closest on free cash flow
- Churchill Downs (CHDN) 5.5%
- KOHLS (KSS) 5.6%
- PROG Holdings (PRG) 6.4%
- J-Long Group (JL) 6.5%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →