AutoNation Inc (AN)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,211,400	2,142,000	2,091,800	2,020,300	2,047,800	2,255,200	2,325,000	2,345,600	2,377,000	2,356,500	2,856,800	3,193,900	3,235,700	3,357,900	3,137,700	2,846,900	3,162,100	2,996,700	2,882,900	2,785,800
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

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,211,400K)
= 0.00

Autonation Inc.'s debt-to-capital ratio has been gradually increasing over the past eight quarters, reflecting a higher proportion of debt relative to the company's overall capital structure. The ratio has steadily risen from 0.68 in Q1 2022 to 0.78 in Q4 2023, indicating an uptrend in financing the company's operations through debt.

The continuous increase in the debt-to-capital ratio suggests that Autonation Inc. may be relying more on debt financing compared to equity financing. This could potentially increase the company's financial risk, as higher debt levels usually entail higher interest expenses and debt repayment obligations.

Investors and stakeholders should closely monitor Autonation Inc.'s debt levels and assess the company's ability to manage its debt obligations effectively. It is essential for the company to strike a balance between debt and equity financing to maintain a sustainable capital structure and ensure long-term financial stability.