Penske Automotive Group Inc (PAG)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	16,720,900	17,065,400	16,633,500	16,146,500	16,401,300	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
Total stockholders’ equity	US$ in thousands	5,209,800	5,203,300	4,954,600	4,815,800	4,726,200	4,551,100	4,409,700	4,323,300	4,174,800	4,088,000	4,219,400	4,164,400	4,095,000	3,866,400	3,762,700	3,484,700	3,326,100	3,083,500	2,777,600	2,689,700
Financial leverage ratio		3.21	3.28	3.36	3.35	3.47	3.25	3.36	3.33	3.38	3.32	3.20	3.28	3.29	3.29	3.54	3.79	3.98	4.22	4.64	5.14

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 over the period from March 31, 2020, to December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio generally suggests a lower level of financial risk, as the company is using less debt to support its assets. The reduction in the ratio signifies improved financial stability and a stronger capital structure, which may contribute to the company's overall financial health and ability to weather economic downturns. The consistent decline in the financial leverage ratio reflects a prudent approach to managing the company's debt levels and indicates a positive financial strategy by Penske Automotive Group Inc.