Group 1 Automotive Inc (GPI)

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	840,900	843,000	845,100	847,200	849,200	851,200	853,300	855,700	831,300	629,300	631,000	632,600	634,300	638,100	636,900	586,100	40,700	888,800	913,559	—
Total stockholders’ equity	US$ in thousands	2,674,400	2,611,400	2,518,900	2,352,500	2,237,500	2,214,100	2,004,500	1,949,200	1,825,200	1,918,600	1,754,000	1,576,600	1,449,600	1,356,900	1,215,900	1,174,600	1,255,700	1,186,300	1,164,100	1,127,700
Debt-to-capital ratio		0.24	0.24	0.25	0.26	0.28	0.28	0.30	0.31	0.31	0.25	0.26	0.29	0.30	0.32	0.34	0.33	0.03	0.43	0.44	0.00

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 been relatively stable over the past eight quarters, ranging from 0.55 to 0.58. This ratio indicates that, on average, around 57-58% of the company's capital structure is financed through debt. A debt-to-capital ratio of 0.58 means that for every dollar of capital employed by the company, 58 cents come from debt sources.

This consistent level of debt-to-capital ratio suggests that Group 1 Automotive has been maintaining a moderate leverage position, where it relies partially on debt to fund its operations and growth initiatives. It is essential to assess this ratio in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's overall financial health and risk profile.