Penske Automotive Group Inc (PAG)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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

Penske Automotive Group Inc has consistently maintained a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across multiple quarters, signaling that the company has no significant debt obligations relative to its total assets, capital, or equity.

The Financial leverage ratio, which measures the company's ability to meet its financial obligations through debt financing, has shown a declining trend from 5.14 in March 2020 to 3.21 in December 2024. This decrease indicates that the company has been reducing its reliance on debt to finance its operations and investments over time.

Overall, Penske Automotive Group Inc's solvency ratios suggest that the company is in a stable financial position with low debt levels compared to its assets, capital, and equity. This indicates a strong ability to meet its financial obligations and weather economic downturns or challenges in the future.


Coverage ratios

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
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

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to meet interest payments.

Analyzing Penske Automotive Group Inc's interest coverage over the periods provided, we observe fluctuations in the ratio. From March 31, 2020, to June 30, 2022, the interest coverage ratio showed a positive trend, increasing steadily from 2.91 to 16.97. This substantial improvement suggests a stronger ability of Penske Automotive Group Inc to cover its interest expenses over these quarters.

However, starting from September 30, 2022, the ratio began to decline, indicating a potential reduction in the company's ability to cover its interest obligations. The interest coverage ratio decreased to 4.99 by December 31, 2024, from its peak of 16.97 in June 30, 2022.

Overall, Penske Automotive Group Inc displayed a mixed performance in managing its interest obligations, with a period of significant improvement followed by a decline in the interest coverage ratio over the later quarters. It is crucial for the company to monitor and manage its debt levels and interest expenses to maintain a healthy interest coverage ratio in the future.