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

Company name
Symbol
Debt-to-assets ratio
Avis Budget Group Inc
CAR
0.15
Hertz Global Holdings Inc
HTZ
0.00
Ryder System Inc
R
0.00