Asbury Automotive Group Inc (ABG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 2,960,900 | 3,502,000 | 1,253,900 | 983,700 |
| Total assets | US$ in thousands | 10,159,400 | 8,021,400 | 8,002,600 | 3,676,300 | 2,911,300 |
| Debt-to-assets ratio | 0.00 | 0.37 | 0.44 | 0.34 | 0.34 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $10,159,400K
= 0.00
The debt-to-assets ratio of Asbury Automotive Group Inc has shown fluctuations over the past five years. The ratio increased steadily from 2019 to 2021, reaching its peak at 0.62 in 2019 before declining to 0.54 in 2021. However, there was a slight increase in 2022 to 0.43, followed by a notable rise to 0.51 in 2023.
This upward trend in the debt-to-assets ratio indicates that the company has been relying more on debt to finance its operations and investments compared to its asset base. The rise in the ratio may suggest an increase in the company's financial leverage and risk exposure.
It is essential for investors and stakeholders to monitor this ratio closely as a higher debt-to-assets ratio generally indicates a higher level of financial risk. Further analysis of the company's debt structure and overall financial health is recommended to understand the implications of the changing debt-to-assets ratio on Asbury Automotive Group Inc's financial position and performance.
Peer comparison
Dec 31, 2023