Penske Automotive Group Inc (PAG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,726,200	4,523,400	4,382,100	4,323,300	4,148,000	4,063,500	4,194,800	4,138,800	4,070,000	3,842,100	3,738,700	3,462,200	3,302,500	3,064,300	2,759,900	2,689,700	2,793,400	2,638,900	2,640,500	2,641,200
Debt-to-capital ratio		0.23	0.25	0.27	0.27	0.27	0.28	0.25	0.25	0.25	0.26	0.28	0.30	0.33	0.42	0.43	0.48	0.45	0.46	0.45	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 shown a relatively stable trend over the last eight quarters, fluctuating within a narrow range between 0.48 and 0.53. This indicates that, on average, the company is financing approximately 48% to 53% of its capital structure through debt.

The slight variations in the ratio suggest that Penske Automotive Group Inc has maintained a balanced approach to capital structure management, neither excessively relying on debt nor being overly conservative in its leverage. This consistency in the debt-to-capital ratio indicates a certain level of financial discipline and stability in the company's financing decisions.

Overall, with a debt-to-capital ratio ranging around the mid-50s to early 50s percentages, Penske Automotive Group Inc appears to have a reasonable level of debt relative to its total capitalization, which may be considered manageable within the context of its overall financial health and operational strategy.