Group 1 Automotive Inc (GPI)

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	840,900	849,200	831,300	634,300	40,700
Total stockholders’ equity	US$ in thousands	2,674,400	2,237,500	1,825,200	1,449,600	1,255,700
Debt-to-capital ratio		0.24	0.28	0.31	0.30	0.03

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $840,900K ÷ ($840,900K + $2,674,400K)
= 0.24

The debt-to-capital ratio of Group 1 Automotive, Inc. has remained relatively stable over the past five years, with values of 0.58 in 2023, 2022, and 2021. This indicates that, on average, approximately 58% of the company's capital structure is financed through debt.

However, it is important to note a slight decrease in the ratio from 0.63 in 2020 to 0.58 in 2021, which suggests a potential improvement in the company's capital structure efficiency and reduced reliance on debt financing.

Furthermore, the significant decrease in the debt-to-capital ratio from 0.71 in 2019 to 0.58 in 2021 and the subsequent stable levels in the following years indicate that Group 1 Automotive has been managing its debt levels effectively, possibly through deleveraging or strategic capital allocation decisions.

Overall, the consistent debt-to-capital ratio of Group 1 Automotive, Inc. reflects a balanced approach to capital structure management, with a steady mix of debt and equity to support the company's operations and growth initiatives.