Penske Automotive Group Inc (PAG)

Debt-to-equity 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-equity ratio		0.30	0.37	0.34	0.49	0.81

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,419,500K ÷ $4,726,200K
= 0.30

The debt-to-equity ratio of Penske Automotive Group Inc has exhibited fluctuations over the past five years. The ratio decreased from 2.28 in 2019 to 0.99 in 2021, indicating a substantial reduction in the company's leverage. However, there was an increase in the ratio to 1.46 in 2020, suggesting a higher reliance on debt financing that year. The ratio further increased to 1.11 in 2022 before reaching 1.14 in 2023, indicating a moderate increase in leverage in the most recent year. Overall, the company has maintained a relatively stable level of debt relative to equity in recent years, except for a notable decrease in 2021, which indicates a potential effort to reduce financial risk.