2 Cheap Cars Group (NZSE:2CC) Debt-to-Equity : 0.39 (As of Sep. 2023)

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What is 2 Cheap Cars Group Debt-to-Equity?

2 Cheap Cars Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was NZ$1.61 Mil. 2 Cheap Cars Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was NZ$5.78 Mil. 2 Cheap Cars Group's Total Stockholders Equity for the quarter that ended in Sep. 2023 was NZ$19.17 Mil. 2 Cheap Cars Group's debt to equity for the quarter that ended in Sep. 2023 was 0.39.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for 2 Cheap Cars Group's Debt-to-Equity or its related term are showing as below:

NZSE:2CC' s Debt-to-Equity Range Over the Past 10 Years
Min: -1.87 Med: 0.96 Max: 1.27
Current: 0.39

During the past 3 years, the highest Debt-to-Equity Ratio of 2 Cheap Cars Group was 1.27. The lowest was -1.87. And the median was 0.96.

NZSE:2CC's Debt-to-Equity is ranked better than
56.68% of 1175 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs NZSE:2CC: 0.39

2 Cheap Cars Group Debt-to-Equity Historical Data

The historical data trend for 2 Cheap Cars Group's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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2 Cheap Cars Group Debt-to-Equity Chart

2 Cheap Cars Group Annual Data

Trend

Mar21

Mar22

Mar23

Debt-to-Equity

0.96

1.27

0.55

2 Cheap Cars Group Semi-Annual Data
	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Debt-to-Equity	Get a 7-Day Free Trial			1.05	1.27	1.04	0.55	0.39

Competitive Comparison of 2 Cheap Cars Group's Debt-to-Equity

For the Auto & Truck Dealerships subindustry, 2 Cheap Cars Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

2 Cheap Cars Group's Debt-to-Equity Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, 2 Cheap Cars Group's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where 2 Cheap Cars Group's Debt-to-Equity falls into.

2 Cheap Cars Group Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

2 Cheap Cars Group's Debt to Equity Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(2.756	+	6.078)	/	16.174
	=	0.55

2 Cheap Cars Group's Debt to Equity Ratio for the quarter that ended in Sep. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1.614	+	5.782)	/	19.167
	=	0.39

2 Cheap Cars Group (NZSE:2CC) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

2 Cheap Cars Group Debt-to-Equity Related Terms

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2 Cheap Cars Group (NZSE:2CC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » 2 Cheap Cars Group Ltd (NZSE:2CC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

102 Mays Road, Onehunga, Auckland, NTL, NZL, 1061

Website

https://www.2cheapcars.co.nz

2 Cheap Cars Group Ltd is an integrated automotive group operating throughout New Zealand via two divisions: Automotive Retail and Finance. The 2 Cheap Cars Group draws revenue from the two divisions: automotive retail division, revenue is primarily from the sale of vehicles and from agent commissions relating to third-party finance and insurance products. NZ Motor Finance (NZMF) generates finance income from lending to customers who are financing vehicles, and from selling guaranteed asset protection insurance (GAP) and payment protection insurance (PPI) products.

2 Cheap Cars Group (NZSE:2CC) Headlines

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