Group 1 Automotive Inc (GPI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,824,200 | 7,774,100 | 6,717,500 | 5,749,400 | 5,089,400 |
| Total stockholders’ equity | US$ in thousands | 2,974,300 | 2,674,400 | 2,237,500 | 1,825,400 | 1,449,700 |
| Financial leverage ratio | 3.30 | 2.91 | 3.00 | 3.15 | 3.51 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,824,200K ÷ $2,974,300K
= 3.30
The financial leverage ratio of Group 1 Automotive Inc has shown a decreasing trend over the past five years, indicating a decrease in the company's reliance on debt financing to fund its operations. The ratio decreased from 3.51 on December 31, 2020, to 2.91 on December 31, 2023. However, there was a slight increase in the ratio to 3.30 on December 31, 2024. Overall, the decreasing trend suggests that the company has been gradually reducing its debt levels relative to its equity, which can be a positive sign of financial health and stability. It is essential to monitor this ratio to ensure that the company maintains an appropriate balance between debt and equity financing.
Peer comparison
Dec 31, 2024