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.
Peer comparison
Dec 31, 2023