Penske Automotive Group Inc (PAG)

Financial leverage 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
Total assets	US$ in thousands	15,671,500	14,810,000	14,796,900	14,395,800	14,114,600	13,588,100	13,504,100	13,665,900	13,464,600	12,719,300	13,306,800	13,222,000	13,247,200	13,009,700	12,876,100	13,816,800	13,942,700	13,689,500	13,361,100	13,574,900
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
Financial leverage ratio		3.32	3.27	3.38	3.33	3.40	3.34	3.22	3.30	3.31	3.31	3.56	3.82	4.01	4.25	4.67	5.14	4.99	5.19	5.06	5.14

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,671,500K ÷ $4,726,200K
= 3.32

Penske Automotive Group Inc's financial leverage ratio has displayed fluctuations over the past eight quarters, ranging from 3.22 to 3.40. The ratio peaked in Q4 2022 at 3.40 and hit its lowest point in Q2 2022 at 3.22. Overall, the company's financial leverage has remained relatively stable within the range of 3.22 to 3.40, indicating that the company relies more on debt financing relative to equity to finance its operations and assets. A higher financial leverage ratio suggests higher financial risk due to the increased reliance on debt to support business activities. It is important for stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage financial risk effectively.