Penske Automotive Group Inc (PAG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.21 | 3.32 | 3.38 | 3.29 | 3.98 |
Penske Automotive Group Inc's solvency ratios indicate that the company has maintained a strong financial position over the years.
- The Debt-to-assets ratio has been consistently at 0.00, suggesting that the company has not relied heavily on debt to finance its assets. This implies a low risk of insolvency as the company's assets are primarily funded through equity rather than debt.
- The Debt-to-capital ratio, also at 0.00 throughout the period, reinforces the low level of financial risk associated with the company's capital structure. This ratio shows the proportion of the company's capital that is financed through debt, with a lower ratio indicating lower financial leverage and greater stability.
- The Debt-to-equity ratio remaining at 0.00 indicates that the company's capital is primarily financed by equity, further supporting the notion of a strong financial position with minimal reliance on debt funding.
- The Financial leverage ratio, although showing a slight decreasing trend from 3.98 in 2020 to 3.21 in 2024, remains at a relatively stable level. This ratio measures the extent to which the company uses debt to finance its operations, with lower values indicating lower financial leverage and reduced risk.
Overall, the solvency ratios of Penske Automotive Group Inc reflect a financially sound and stable position, with minimal reliance on debt to support its operations and a strong equity base supporting its asset structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.47 | 7.29 | 12.12 | 14.31 | 4.25 |
The interest coverage ratio for Penske Automotive Group Inc has shown variability over the past five years. It increased from 4.25 in December 31, 2020, to 14.31 in December 31, 2021, indicating a significant improvement in the company's ability to cover interest expenses from its earnings. In the following years, the ratio remained relatively strong at 12.12 in December 31, 2022, and 7.29 in December 31, 2023, demonstrating continued robustness in meeting interest obligations.
However, there was a decline in the interest coverage ratio to 5.47 in December 31, 2024, suggesting a potential decrease in the company's ability to cover interest expenses compared to the previous year. Overall, Penske Automotive Group Inc has historically maintained sufficient earnings to cover its interest payments, although the recent decrease should be monitored closely to assess any potential implications for the company's financial health.