Penske Automotive Group Inc (PAG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,720,900 | 15,671,500 | 14,114,600 | 13,464,600 | 13,247,200 |
| Total stockholders’ equity | US$ in thousands | 5,209,800 | 4,726,200 | 4,174,800 | 4,095,000 | 3,326,100 |
| Financial leverage ratio | 3.21 | 3.32 | 3.38 | 3.29 | 3.98 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,720,900K ÷ $5,209,800K
= 3.21
The financial leverage ratio of Penske Automotive Group Inc has shown a decreasing trend from 3.98 in December 31, 2020, to 3.21 in December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt financing relative to equity over the years. However, it is important to note that the ratio still remains above 1, suggesting that the company's operations are financed more by debt than equity. The decrease in the ratio could signify improved financial stability and a lower risk of default. Overall, Penske Automotive Group Inc's financial leverage ratio trend indicates a prudent approach to managing its capital structure.
Peer comparison
Dec 31, 2024