Penske Automotive Group Inc (PAG)

Debt-to-equity 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-equity ratio		0.30	0.34	0.37	0.37	0.37	0.38	0.34	0.33	0.34	0.35	0.38	0.43	0.49	0.72	0.74	0.94	0.81	0.86	0.81	0.80

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 for Penske Automotive Group Inc has been fluctuating over the past eight quarters. The ratio ranged from 0.94 to 1.14 during this period, indicating varying levels of leverage.

The company's debt-to-equity ratio increased from 0.97 in Q1 2022 to 1.14 in Q4 2023, reaching its peak in the latest quarter. This suggests a higher reliance on debt financing relative to equity over time.

Although the ratio decreased in some quarters, such as Q3 2022 and Q2 2023, it remained consistently above 1, indicating that the company has more debt than equity in its capital structure.

Overall, the trend of increasing debt-to-equity ratio raises concerns about the company's financial leverage and its ability to repay debt obligations in the future. Management may need to carefully assess their debt levels and consider strategies to maintain a healthy balance between debt and equity to ensure financial stability.