Group 1 Automotive Inc (GPI)
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 | 840,900 | 849,200 | 831,300 | 634,300 | 40,700 |
| Total assets | US$ in thousands | 7,774,100 | 6,717,500 | 5,749,400 | 5,089,400 | 5,570,200 |
| Debt-to-assets ratio | 0.11 | 0.13 | 0.14 | 0.12 | 0.01 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $840,900K ÷ $7,774,100K
= 0.11
Group 1 Automotive, Inc.'s debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.45 to 0.56. A decreasing trend is observed from 2019 to 2021, indicating a declining reliance on debt to finance its assets. However, there was a slight increase in the ratio in 2022 and 2023, suggesting a potential uptick in debt usage.
With the ratio averaging around 0.47 over the period, it indicates that Group 1 Automotive, Inc. finances approximately 47% of its assets with debt, leaving the remaining 53% financed by equity. This suggests a moderate level of leverage, balancing the benefits of debt financing with the risks associated with higher debt levels. The company's ability to effectively manage its debt levels is crucial in maintaining financial stability and sustainable growth.
Peer comparison
Dec 31, 2023