AutoNation Inc (AN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 11,980,000 | 10,059,700 | 8,943,600 | 9,887,200 | 10,543,300 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $11,980,000K
= 0.00
The debt-to-assets ratio of Autonation Inc. has exhibited an increasing trend over the past five years, reaching 0.64 at the end of 2023. This ratio indicates that 64% of the company's total assets are financed by debt.
The upward trend in the debt-to-assets ratio may suggest that Autonation Inc. has been relying more on debt to finance its operations and investments. While higher debt levels can provide the company with the necessary funds for growth and expansion, it also increases financial risk by potentially leading to higher interest payments and decreasing financial flexibility.
It is important for investors and stakeholders to closely monitor the debt-to-assets ratio of Autonation Inc. to ensure that the company maintains a healthy balance between debt and assets and does not become overly leveraged. Further analysis of the company's overall financial health and cash flow management would provide a more comprehensive understanding of its ability to meet its debt obligations and sustain long-term growth.
Peer comparison
Dec 31, 2023