Asbury Automotive Group Inc (ABG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,337,000 | 10,159,400 | 8,021,400 | 8,002,600 | 3,676,300 |
| Total stockholders’ equity | US$ in thousands | 3,502,100 | 3,244,100 | 2,903,300 | 2,115,500 | 905,500 |
| Financial leverage ratio | 2.95 | 3.13 | 2.76 | 3.78 | 4.06 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,337,000K ÷ $3,502,100K
= 2.95
The financial leverage ratio of Asbury Automotive Group Inc has shown a decreasing trend over the years from 2020 to 2024. In 2020, the ratio was 4.06, indicating that the company's level of debt was relatively high compared to its equity. By the end of 2024, the ratio had decreased to 2.95, suggesting a significant reduction in the company's reliance on debt financing.
The decreasing trend in the financial leverage ratio indicates that Asbury Automotive Group Inc has been gradually reducing its financial risk and enhancing its financial stability by decreasing its debt levels in relation to its equity. This may indicate improved financial health and ability to weather economic downturns or other financial challenges. However, it is essential to continue monitoring the trend to ensure sustainable and prudent financial management practices.
Peer comparison
Dec 31, 2024