AutoNation Inc (AN)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,211,400 | 2,047,800 | 2,377,000 | 3,235,700 | 3,162,100 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,211,400K)
= 0.00
The debt-to-capital ratio of Autonation Inc. has been gradually increasing over the past five years, indicating a rising level of reliance on debt financing relative to the company's total capital structure. In 2023, the ratio stands at 0.78, compared to 0.74 in 2022, 0.66 in 2021, 0.60 in 2020, and 0.64 in 2019.
This trend suggests that Autonation Inc. has been taking on more debt relative to its total capital over the years. While debt can be a cost-effective source of funding, high levels of indebtedness can increase financial risk, especially in periods of economic downturn or rising interest rates. It is essential for investors and stakeholders to monitor this trend closely to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023