Penske Automotive Group Inc (PAG)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,385,400 | 1,305,300 | 1,258,700 | 1,301,500 | 1,474,300 | 1,503,400 | 1,534,600 | 1,541,400 | 1,487,800 | 1,508,600 | 1,523,700 | 1,538,800 | 1,356,400 | 1,242,600 | 1,149,000 | 817,700 | 704,500 | 614,800 | 500,000 | 600,400 |
Interest expense (ttm) | US$ in thousands | 277,600 | 229,400 | 215,700 | 204,200 | 186,800 | 204,800 | 176,500 | 147,500 | 122,800 | 99,300 | 89,800 | 91,400 | 94,800 | 114,800 | 131,400 | 143,900 | 165,900 | 179,600 | 195,100 | 206,400 |
Interest coverage | 4.99 | 5.69 | 5.84 | 6.37 | 7.89 | 7.34 | 8.69 | 10.45 | 12.12 | 15.19 | 16.97 | 16.84 | 14.31 | 10.82 | 8.74 | 5.68 | 4.25 | 3.42 | 2.56 | 2.91 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,385,400K ÷ $277,600K
= 4.99
The interest coverage ratio of Penske Automotive Group Inc has shown a generally positive trend over the examined period. It increased from 2.91 as of March 31, 2020, to 4.99 as of December 31, 2024, indicating the company's improving ability to cover its interest expenses with its operating income.
The ratio demonstrates that the company generated more than enough earnings to cover its interest payments throughout the period, with the coverage ratio peaking at 16.97 on June 30, 2022. This indicates a healthy financial position and lower risk of default due to an inability to meet interest obligations.
From March 31, 2020, to December 31, 2024, Penske Automotive Group Inc's interest coverage ratio generally trended upward with some fluctuations, suggesting successful financial management and operational performance. However, the ratio experienced a slight decline towards the end of the period, indicating a potential need for monitoring interest obligations in relation to earnings in upcoming periods.
Peer comparison
Dec 31, 2024