AutoNation Inc (AN)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,001,700 | 12,906,600 | 12,828,600 | 12,041,300 | 12,355,700 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,457,300 | 2,371,200 | 2,183,200 | 2,359,800 | 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 |
| Financial leverage ratio | 5.29 | 5.44 | 5.88 | 5.10 | 5.59 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,001,700K ÷ $2,457,300K
= 5.29
The financial leverage ratio of AutoNation Inc has shown fluctuations over the past few years. The ratio has been steadily increasing from 3.71 in March 2020 to 5.29 in December 2024. This indicates that the company has been taking on more debt relative to its equity over this period.
A higher financial leverage ratio suggests that the company is relying more on debt financing to fund its operations and growth, which can potentially amplify returns for equity investors but also increases financial risk. It indicates a higher level of financial leverage, which may result in higher interest payments and reduced financial flexibility.
It is important for investors and stakeholders to closely monitor the trend in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively. Additionally, an increasing trend in the financial leverage ratio may raise concerns about the company's overall financial health and sustainability in the long run.
Peer comparison
Dec 31, 2024