Penske Automotive Group Inc (PAG)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,419,500	1,546,900	1,392,000	1,602,100	2,257,000
Total assets	US$ in thousands	15,671,500	14,114,600	13,464,600	13,247,200	13,942,700
Debt-to-assets ratio		0.09	0.11	0.10	0.12	0.16

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,419,500K ÷ $15,671,500K
= 0.09

The debt-to-assets ratio for Penske Automotive Group Inc has shown a fluctuating trend over the past five years. From 2019 to 2023, the ratio decreased from 0.46 to 0.34. This indicates that the company's reliance on debt relative to its total assets has decreased over the period, which could suggest improved financial health and reduced financial risk. However, it's essential to note that the ratio saw some fluctuations in between the years, reaching its lowest point at 0.30 in 2021 and then slightly increasing to 0.36 in 2020 before declining again in 2023. Overall, the trend in the debt-to-assets ratio reflects a mix of conservative debt management and capital structure adjustments by Penske Automotive Group Inc throughout the years.