Group 1 Automotive Inc (GPI)

Debt-to-equity 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-equity ratio 0.31 0.38 0.46 0.44 0.03

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $840,900K ÷ $2,674,400K
= 0.31

The debt-to-equity ratio of Group 1 Automotive, Inc. has shown a decreasing trend over the past five years, decreasing from 2.47 in 2019 to 1.37 in 2023. This indicates that the company has been relying less on debt financing compared to equity financing over this period. A lower debt-to-equity ratio is generally considered favorable as it suggests the company is less leveraged and has less financial risk. Group 1 Automotive's decreasing trend in the debt-to-equity ratio could signify improved financial stability and better risk management by the company. However, it is important to note that the debt-to-equity ratio of 1.37 in 2023 still indicates a significant level of debt relative to equity, and further monitoring of the company's debt management practices is advisable.