Asbury Automotive Group Inc (ABG)

Debt-to-capital ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands — 2,912,100 3,001,200 3,038,000 2,960,900 2,865,800 3,025,500 3,291,000 3,502,000 1,394,300 1,404,400 1,215,500 1,253,900 1,243,800 989,200 854,200 983,700 922,100 927,400 922,400
Total stockholders’ equity US$ in thousands 3,244,100 3,248,500 3,068,600 3,049,200 2,903,500 2,642,900 2,410,400 2,182,500 2,115,500 1,301,300 1,148,300 998,000 905,500 811,900 713,100 660,900 646,300 600,000 556,300 504,600
Debt-to-capital ratio 0.00 0.47 0.49 0.50 0.50 0.52 0.56 0.60 0.62 0.52 0.55 0.55 0.58 0.61 0.58 0.56 0.60 0.61 0.63 0.65

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,244,100K)
= 0.00

The debt-to-capital ratio of Asbury Automotive Group Inc has exhibited some fluctuation over the past eight quarters, ranging from 0.50 to 0.64. The trend indicates a slight increase in debt compared to capital structure since the fourth quarter of 2022, where the ratio was lower at 0.54.

The ratios for the first three quarters of 2023 remained relatively consistent at around 0.52, indicating a stable debt-to-capital relationship during that period. However, by the fourth quarter of 2023, the ratio increased to 0.62, signifying a higher proportion of debt relative to capital in the company's financial structure.

Overall, the increasing trend in the debt-to-capital ratio suggests that Asbury Automotive Group Inc may be taking on more debt in relation to its capital base, potentially indicating a higher level of leverage in its financial operations. This could lead to increased financial risk for the company, as higher debt levels can impact its ability to meet financial obligations and affect its financial stability. It would be important for stakeholders to closely monitor this ratio to assess the company's financial health and risk management strategies.