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.