Avis Budget Group Inc (CAR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,791,000 | 4,644,000 | 3,990,000 | 4,191,000 | 3,416,000 |
| Total assets | US$ in thousands | 32,569,000 | 25,927,000 | 22,600,000 | 17,538,000 | 23,126,000 |
| Debt-to-assets ratio | 0.15 | 0.18 | 0.18 | 0.24 | 0.15 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,791,000K ÷ $32,569,000K
= 0.15
The debt-to-assets ratio of Avis Budget Group Inc has consistently increased over the past five years. In 2023, the ratio stands at 0.73, up from 0.71 in 2022, 0.68 in 2021, and 0.63 in both 2020 and 2019. This indicates that a larger portion of the company's assets is financed by debt in 2023 compared to previous years. A rising debt-to-assets ratio may suggest an increased reliance on debt to fund operations or investments, which can lead to higher financial risk and interest expense. It is essential for stakeholders to monitor this trend closely to assess the company's ability to manage its debt obligations effectively and sustain profitability in the long term.
Peer comparison
Dec 31, 2023