Group 1 Automotive Inc (GPI)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	9,824,200	9,976,500	8,850,300	8,509,900	7,774,100	1,775,200	7,424,600	6,923,200	6,717,500	6,251,500	6,102,800	6,039,600	5,749,400	4,757,600	4,855,900	5,065,100	5,089,400	4,983,400	4,859,600	5,441,100
Total stockholders’ equity	US$ in thousands	2,974,100	2,976,200	2,866,300	2,772,400	2,674,400	2,611,400	2,518,900	2,352,500	2,237,600	2,214,100	2,004,500	1,949,300	1,825,400	1,918,600	1,754,000	1,576,700	1,449,700	1,357,000	1,216,000	1,174,700
Financial leverage ratio		3.30	3.35	3.09	3.07	2.91	0.68	2.95	2.94	3.00	2.82	3.04	3.10	3.15	2.48	2.77	3.21	3.51	3.67	4.00	4.63

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,824,200K ÷ $2,974,100K
= 3.30

The financial leverage ratio of Group 1 Automotive Inc has been on a downward trend from 4.63 as of March 31, 2020, to 3.30 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing over the years. However, there have been fluctuations in the ratio over the period under review, with some slight increases and decreases observed. The ratio peaked at 4.63 in March 2020, and then decreased steadily before experiencing some fluctuations in the following quarters.

Despite the fluctuations, the downward trend in the financial leverage ratio suggests that Group 1 Automotive Inc has been effectively managing its debt levels and reducing its financial risk. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and evaluate its overall financial health.