Asbury Automotive Group Inc (ABG)

Debt-to-equity 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-equity ratio		0.00	0.90	0.98	1.00	1.02	1.08	1.26	1.51	1.66	1.07	1.22	1.22	1.38	1.53	1.39	1.29	1.52	1.54	1.67	1.83

December 31, 2023 calculation

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

The debt-to-equity ratio of Asbury Automotive Group Inc has been fluctuating over the past eight quarters. The ratio was highest in Q1 2022 at 1.74, indicating a higher proportion of debt relative to equity in the company's capital structure. However, there has been a gradual decrease in the ratio since then, reaching a low of 1.01 in Q3 2023.

This variation in the debt-to-equity ratio suggests that the company has been actively managing its debt levels relative to equity. A decreasing ratio generally indicates a lower reliance on debt financing compared to equity financing, which can be seen as a positive sign for investors and creditors.

Overall, while the company experienced fluctuations in its debt-to-equity ratio over the past two years, the downward trend in recent quarters may indicate a more conservative approach to capital structure management by Asbury Automotive Group Inc.