Penske Automotive Group Inc (PAG)

Debt-to-assets ratio

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
Long-term debt US$ in thousands 1,419,500 1,537,300 1,613,600 1,619,800 1,546,900 1,561,900 1,407,500 1,383,900 1,392,000 1,356,700 1,436,300 1,492,500 1,602,100 2,216,100 2,054,100 2,516,100 2,257,000 2,282,500 2,134,200 2,118,300
Total assets US$ in thousands 15,671,500 14,810,000 14,796,900 14,395,800 14,114,600 13,588,100 13,504,100 13,665,900 13,464,600 12,719,300 13,306,800 13,222,000 13,247,200 13,009,700 12,876,100 13,816,800 13,942,700 13,689,500 13,361,100 13,574,900
Debt-to-assets ratio 0.09 0.10 0.11 0.11 0.11 0.11 0.10 0.10 0.10 0.11 0.11 0.11 0.12 0.17 0.16 0.18 0.16 0.17 0.16 0.16

December 31, 2023 calculation

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

Penske Automotive Group Inc's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.29 and 0.34. This indicates that, on average, the company finances around 31% to 34% of its assets through debt. The consistency in the ratio implies a balanced approach to capital structure management, with a moderate reliance on debt to fund its operations and investments. A lower debt-to-assets ratio may signify lower financial risk, as a higher proportion of assets are financed through equity, potentially providing greater financial stability. Conversely, a higher ratio may indicate higher leverage, which can enhance returns but also pose increased financial risk in challenging economic environments. Overall, the trend in Penske Automotive Group Inc's debt-to-assets ratio suggests a prudent and measured approach to capital structure management.