Avis Budget Group Inc (CAR)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,791,000 | 4,736,000 | 4,668,000 | 4,662,000 | 4,644,000 | 4,563,000 | 4,624,000 | 4,678,000 | 3,990,000 | 4,009,000 | 4,277,000 | 4,264,000 | 4,191,000 | 4,145,000 | 3,884,000 | 3,396,000 | 3,416,000 | 3,388,000 | 3,115,000 | 3,501,000 |
| Total stockholders’ equity | US$ in thousands | -349,000 | -33,000 | -129,000 | -444,000 | -703,000 | -509,000 | -654,000 | -992,000 | -220,000 | -211,000 | 92,000 | -316,000 | -155,000 | -76,000 | -153,000 | 292,000 | 656,000 | 495,000 | 376,000 | 324,000 |
| Debt-to-capital ratio | 1.08 | 1.01 | 1.03 | 1.11 | 1.18 | 1.13 | 1.16 | 1.27 | 1.06 | 1.06 | 0.98 | 1.08 | 1.04 | 1.02 | 1.04 | 0.92 | 0.84 | 0.87 | 0.89 | 0.92 |
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 eight quarters, hovering around the range of 1.00 to 1.06. This indicates that the company's reliance on debt as a source of financing relative to its total capital has remained consistent. A ratio above 1.00 suggests that the company has more debt than equity in its capital structure. A gradual increase in the ratio over time could indicate a growing level of debt compared to equity, which may raise concerns about the company's financial leverage and ability to meet its debt obligations. However, the stability of the ratio suggests that Avis Budget Group Inc has been managing its debt levels within a relatively consistent range. It would be important for stakeholders to continue monitoring the trend of this ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023