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.