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.