Asbury Automotive Group Inc (ABG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,159,400 | 8,021,400 | 8,002,600 | 3,676,300 | 2,911,300 |
| Total stockholders’ equity | US$ in thousands | 3,244,100 | 2,903,500 | 2,115,500 | 905,500 | 646,300 |
| Financial leverage ratio | 3.13 | 2.76 | 3.78 | 4.06 | 4.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,159,400K ÷ $3,244,100K
= 3.13
The financial leverage ratio of Asbury Automotive Group Inc has shown fluctuations over the past five years. The ratio was 3.13 at the end of 2023, indicating an increase from the previous year. This suggests that the company has increased its reliance on debt to finance its operations and investments.
In 2022, the ratio was 2.76, showing a decrease from the prior year. This indicates a lower level of financial leverage compared to 2021. However, the ratio rose to 3.78 in 2021, signaling an increase in the company's debt levels that year.
The financial leverage ratio was 4.06 at the end of 2020, demonstrating a further increase in leverage compared to 2019 when the ratio stood at 4.50, indicating the highest level of leverage in the analyzed period.
Overall, the trend in the financial leverage ratio of Asbury Automotive Group Inc suggests varying levels of reliance on debt to fund its operations and investments over the past five years. Investors and analysts may want to closely monitor the company's debt levels and its ability to manage the associated risks.
Peer comparison
Dec 31, 2023