Avis Budget Group Inc (CAR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -349,000 | -703,000 | -220,000 | -155,000 | 656,000 |
| Debt-to-capital ratio | 1.08 | 1.18 | 1.06 | 1.04 | 0.84 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,791,000K ÷ ($4,791,000K + $-349,000K)
= 1.08
The debt-to-capital ratio of Avis Budget Group Inc has been relatively stable over the past five years, ranging from 0.96 in 2019 to 1.04 in 2022. This ratio indicates that, on average, the company's debt makes up around 101% of its total capital structure. A ratio greater than 1 suggests that the company relies more on debt financing than equity financing to support its operations and growth. However, the consistency in the ratio suggests that the company has maintained a relatively balanced capital structure over the years, with a similar proportion of debt to total capital. It is important for investors and creditors to monitor this ratio to assess the company's financial risk and leverage levels.
Peer comparison
Dec 31, 2023