Penske Automotive Group Inc (PAG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,726,200	4,148,000	4,070,000	3,302,500	2,793,400
Debt-to-capital ratio		0.23	0.27	0.25	0.33	0.45

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,419,500K ÷ ($1,419,500K + $4,726,200K)
= 0.23

The debt-to-capital ratio of Penske Automotive Group Inc has displayed fluctuations in recent years. As of December 31, 2023, the ratio stood at 0.53, which is consistent with the prior year's figure. In 2021, the ratio was slightly lower at 0.50, signaling a reduced reliance on debt as a component of the company's capital structure. However, there was an increase in the ratio in 2020 to 0.59 followed by a more significant rise in 2019 to 0.70.

Overall, the trend suggests that Penske Automotive Group Inc has maintained a relatively stable debt-to-capital ratio in recent years, indicating a balanced mix of debt and equity financing to support its operations and investments. The company's consistent management of its debt levels demonstrates a prudent approach towards capital structure management, which may contribute to its financial stability and resilience in varying market conditions.