Group 1 Automotive Inc (GPI)

Debt-to-equity 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-equity ratio		0.31	0.32	0.34	0.36	0.38	0.38	0.43	0.44	0.46	0.33	0.36	0.40	0.44	0.47	0.52	0.50	0.03	0.75	0.78	0.00

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 fluctuated over the past eight quarters from Q1 2022 to Q4 2023. The ratio ranged from a low of 1.21 in Q3 2022 to a high of 1.38 in Q4 2022 and Q1 2022. Overall, the average debt-to-equity ratio during this period was approximately 1.33, indicating that, on average, the company has $1.33 in debt for every $1 of equity.

A debt-to-equity ratio above 1 suggests that Group 1 Automotive has more debt than equity, which may indicate higher financial risk and leverage. This could make the company more vulnerable to economic downturns or interest rate fluctuations. However, it can also signify that the company is using debt financing to fuel growth opportunities.

The consistency of the debt-to-equity ratio around the 1.33 mark in recent quarters indicates that the company's capital structure has remained relatively stable in terms of debt and equity levels. Investors and creditors may monitor this ratio closely to assess the company's financial health and its ability to meet its debt obligations. Further analysis of the company's financial statements and business operations would provide additional insights into the implications of this debt-to-equity ratio trend.