AutoNation Inc (AN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,980,000 | 10,059,700 | 8,943,600 | 9,887,200 | 10,543,300 |
| Total stockholders’ equity | US$ in thousands | 2,211,400 | 2,047,800 | 2,377,000 | 3,235,700 | 3,162,100 |
| Financial leverage ratio | 5.42 | 4.91 | 3.76 | 3.06 | 3.33 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,980,000K ÷ $2,211,400K
= 5.42
The financial leverage ratio of Autonation Inc. has shown an increasing trend over the past five years, starting at 3.33 in 2019 and reaching 5.42 in 2023. This indicates that the company's reliance on debt has been growing steadily relative to its equity over this period. The rise in the financial leverage ratio signifies that Autonation Inc. has been increasingly financing its operations and investments through debt rather than equity. This could potentially lead to higher financial risk for the company, as it indicates a higher level of debt in its capital structure. It is essential for investors and stakeholders to closely monitor Autonation Inc.'s financial leverage ratio to assess its ability to meet debt obligations and manage its financial risks effectively.
Peer comparison
Dec 31, 2023