Penske Automotive Group (Penske Automotive Group) Interest Coverage : 4.96 (As of Mar. 2024)

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What is Penske Automotive Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Penske Automotive Group's Operating Income for the three months ended in Mar. 2024 was $328 Mil. Penske Automotive Group's Interest Expense for the three months ended in Mar. 2024 was $-66 Mil. Penske Automotive Group's interest coverage for the quarter that ended in Mar. 2024 was 4.96. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Penske Automotive Group's Interest Coverage or its related term are showing as below:

PAG' s Interest Coverage Range Over the Past 10 Years
Min: 3.13 Med: 4.73 Max: 14.31
Current: 5.54

PAG's Interest Coverage is ranked worse than
57.93% of 1034 companies
in the Vehicles & Parts industry
Industry Median: 7.785 vs PAG: 5.54

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Penske Automotive Group Interest Coverage Historical Data

The historical data trend for Penske Automotive Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Penske Automotive Group Interest Coverage Chart

Penske Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.13

4.48

14.31

12.12

6.17

Penske Automotive Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															7.67	6.92	5.53	4.94	4.96

Competitive Comparison of Penske Automotive Group's Interest Coverage

For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Penske Automotive Group's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Penske Automotive Group's Interest Coverage falls into.

Penske Automotive Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Penske Automotive Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Penske Automotive Group's Interest Expense was $-226 Mil. Its Operating Income was $1,392 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,756 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1392.2	/	-225.7
	=	6.17

Penske Automotive Group's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Penske Automotive Group's Interest Expense was $-66 Mil. Its Operating Income was $328 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,869 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	327.6	/	-66.1
	=	4.96

The higher the ratio, the stronger the company's Financial Strength is.

Penske Automotive Group (NYSE:PAG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Penske Automotive Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Penske Automotive Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Penske Automotive Group (Penske Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Penske Automotive Group Inc (NYSE:PAG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UA9:Germany

Address

2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954

Website

https://www.penskeautomotive.com

Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.

Executives

Sandra E. Pierce	director	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr	director, officer: President	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
John Barr	director	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
Michelle Hulgrave	officer: EVP & CFO	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Shane M. Spradlin	officer: EVP, Gen. Counsel & Sec.	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kimberly J Mcwaters	director	20410 NORTH 19TH AVENUE, PHOENIX AZ 85027
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Greg C Smith	director	FORD MOTOR COMPANY, 21175 OAKWOOD BLVD, DEARBORN MI 48124
Denker Claude H Iii	officer: EVP - Human Resources	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Roger S Penske	director, 10 percent owner, officer: Chair & CEO	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
H Brian Thompson	director	1950 OLD GALLOWS ROAD SUITE 201, VIENNA VA 22182
Ronald G Steinhart	director	3890 WEST NORTHWEST HIGHWAY SUITE 400, DALLAS TX 75220
Michael R Eisenson	director	C/O CHARLESBANK CAPITAL PARTNERS, 600 ATLANTIC AV 28TH FL, BOSTON MA 02210
Gregory W Penske	director	3534 NORTH PECK ROAD, EL MONTE CA 91731
Wolfgang Duerheimer	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302