AutoNation Inc (AN)
Debt-to-equity 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-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 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,211,400K
= 0.00
The debt-to-equity ratio for Autonation Inc. has been consistently increasing over the past few quarters, indicating a growing reliance on debt to finance the company's operations and acquisitions. This trend suggests that the company has been taking on more debt relative to its equity, which may increase its financial risk and leverage.
A debt-to-equity ratio of 3.47 in Q4 2023 reflects that the company has $3.47 in debt for every $1 of equity. This high ratio indicates that Autonation Inc. is heavily leveraged and may have difficulty meeting its debt obligations in the event of financial distress.
The upward trend in the debt-to-equity ratio from Q1 2022 to Q4 2023 suggests that Autonation Inc. has been increasing its debt levels more rapidly than its equity, potentially signaling a shift towards a more aggressive financing strategy. Investors and stakeholders should closely monitor the company's debt levels and financial performance to assess its ability to manage and service its debt obligations effectively.
Peer comparison
Dec 31, 2023