Asbury Automotive Group Inc (ABG)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.95 | 3.03 | 3.09 | 3.03 | 3.13 | 2.54 | 2.66 | 2.68 | 2.76 | 2.96 | 3.17 | 3.60 | 3.78 | 2.74 | 3.07 | 3.59 | 4.06 | 4.35 | 4.11 | 4.64 |
Asbury Automotive Group Inc has consistently maintained a low level of debt relative to its assets, with a debt-to-assets ratio of 0.00 across all periods from March 31, 2020, to December 31, 2024. This indicates that the company's assets are predominantly financed through equity rather than debt.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00 throughout the same period, highlighting the company's strong financial position and minimal reliance on debt to fund its operations.
The financial leverage ratio, which measures the extent to which a company uses debt to finance its assets, decreased from 4.64 on March 31, 2020, to 2.95 on December 31, 2024. This declining trend signals a reduction in the company's reliance on debt financing over time, which is generally seen as a positive indicator of financial health and stability.
Overall, based on the solvency ratios analyzed, Asbury Automotive Group Inc appears to have a conservative capital structure, with a strong ability to meet its financial obligations and weather economic uncertainties due to its low debt levels and decreasing financial leverage ratio.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.05 | 2.79 | 3.32 | 4.72 | 5.64 | 8.35 | 8.53 | 8.89 | 9.26 | 7.11 | 7.61 | 8.10 | 7.85 | 10.24 | 9.32 | 7.38 | 5.49 | 4.54 | 3.45 | 3.31 |
Asbury Automotive Group Inc's interest coverage ratio has demonstrated fluctuations over the quarters provided. The interest coverage ratio measures the company's ability to meet its interest expenses from its operating income.
From March 31, 2020, to December 31, 2024, the interest coverage ratio generally trended upwards initially, peaking in September 30, 2021, at 10.24 before gradually declining. The ratio ranged from a low of 2.79 on September 30, 2024, to a high of 10.24 on September 30, 2021, indicating variability in the company's ability to cover its interest expenses.
The fluctuation in the interest coverage ratio may reflect changes in the company's profitability, operating income, and debt levels. A higher interest coverage ratio suggests that Asbury Automotive Group Inc is more capable of servicing its debt obligations with its current operating income.
Overall, analyzing the interest coverage ratio can provide insights into the company's financial health, its ability to manage debt, and the risks associated with its interest obligations. Investors and creditors may monitor this ratio to assess the company's ability to meet its interest payments and evaluate its financial stability.