Group 1 Automotive Inc (GPI)

Solvency ratios

	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
Debt-to-assets ratio	0.11	0.11	0.11	0.12	0.13	0.14	0.14	0.14	0.14	0.13	0.13	0.12	0.12	0.13	0.13	0.11	0.01	0.17	0.17	0.00
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
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
Financial leverage ratio	2.91	2.85	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	4.44	4.49	4.49	4.67

Group 1 Automotive, Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.43 and 0.47. This suggests that around 43% to 47% of the company's assets are financed by debt.

The debt-to-capital ratio also shows consistency, hovering between 0.55 and 0.58. This indicates that between 55% and 58% of the company's capital is derived from debt sources.

The debt-to-equity ratio has exhibited some fluctuation, with values ranging from 1.21 to 1.38. This ratio indicates that Group 1 Automotive has been using more debt funding in relation to equity to finance its operations.

The financial leverage ratio, which reflects the proportion of a company's total assets that are financed by debt, has shown more variability, fluctuating between 2.82 and 3.10. This suggests that the company's assets are financed at a leverage ratio of 2.82 to 3.10 times the equity.

Overall, the solvency ratios of Group 1 Automotive, Inc. demonstrate a consistent reliance on debt financing to support its operations, with the company's financial leverage ratio being the most volatile indicator of its solvency position.

Coverage ratios

	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
Interest coverage	8.47	9.82	10.72	11.76	12.57	13.69	14.37	15.07	13.82	13.05	11.91	8.70	7.02	6.13	4.30	4.38	4.54	4.38	4.39	4.52

Group 1 Automotive, Inc.'s interest coverage has shown a declining trend over the past eight quarters. The interest coverage ratio, which measures the company's ability to repay its interest expenses, decreased from 12.02 in Q1 2022 to 6.11 in Q4 2023. This indicates that the company's ability to cover its interest payments with its earnings has weakened over the period under review. The decreasing trend suggests that Group 1 Automotive may be facing challenges in generating sufficient earnings to cover its interest expenses. It is essential for investors and stakeholders to closely monitor the company's financial performance and leverage levels to assess the impact of its declining interest coverage on its overall financial health.