AutoNation Inc (AN)

Financial leverage 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
Total assets	US$ in thousands	11,980,000	11,241,000	11,079,500	10,360,800	10,059,700	9,415,300	9,307,500	9,357,900	8,943,600	8,140,700	8,381,000	9,267,500	9,887,200	9,569,300	9,448,500	10,552,400	10,543,300	10,451,800	10,699,500	10,914,300
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
Financial leverage ratio		5.42	5.25	5.30	5.13	4.91	4.17	4.00	3.99	3.76	3.45	2.93	2.90	3.06	2.85	3.01	3.71	3.33	3.49	3.71	3.92

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 been steadily increasing over the past eight quarters, reflecting the company's escalating levels of debt relative to its equity.

The ratio has expanded from 3.99 in Q1 2022 to 5.42 in Q4 2023. This upward trend indicates a growing reliance on borrowed funds and debt financing in comparison to the company's equity.

The noticeable increase in the financial leverage ratio suggests that Autonation Inc. may be taking on more debt to support its operations or growth initiatives, potentially leading to higher financial risk and interest expenses. It is essential for investors and stakeholders to closely monitor this trend to assess the company's ability to manage its debt obligations effectively.