Asbury Automotive Group (Asbury Automotive Group) Interest Coverage

: 4.94 (As of Dec. 2023)

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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. Asbury Automotive Group's Operating Income for the three months ended in Dec. 2023 was $242 Mil. Asbury Automotive Group's Interest Expense for the three months ended in Dec. 2023 was $-49 Mil. Asbury Automotive Group's interest coverage for the quarter that ended in Dec. 2023 was 4.94. The higher the ratio, the stronger the company's financial strength is.

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

ABG' s Interest Coverage Range Over the Past 10 Years
Min: 3.58 Med: 4.91 Max: 7.92
Current: 6.47

ABG's Interest Coverage is ranked worse than
54.61% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.57 vs ABG: 6.47

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

Asbury Automotive Group Interest Coverage Historical Data

The historical data trend for Asbury 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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Asbury Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.58

5.29

7.76

7.92

6.46

Asbury Automotive Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																7.42	7.29	7.18	6.84	4.94

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Asbury 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.

Asbury Automotive Group Interest Coverage Distribution

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

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

Asbury 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.

Asbury 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, Asbury Automotive Group's Interest Expense was $-166 Mil. Its Operating Income was $1,071 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,343 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1070.7	/	-165.7
	=	6.46

Asbury Automotive Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Asbury Automotive Group's Interest Expense was $-49 Mil. Its Operating Income was $242 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,343 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	241.8	/	-48.9
	=	4.94

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

Asbury Automotive Group (NYSE:ABG) 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 .

Asbury Automotive Group Interest Coverage Related Terms

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

Asbury Automotive Group (Asbury Automotive Group) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

AWG:Germany

Address

2905 Premiere Parkway North West, Suite 300, Duluth, GA, USA, 30097

Website

https://www.asburyauto.com

Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates 138 new-vehicle stores, seven used-vehicle stores, and 32 collision centers. Over 70% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products and its own F&I products via Total Care Auto. Asbury operates in 14 states (mostly Texas, the West, and the Southeast). Asbury store brands include David McDavid and Park Place in Texas, and the Larry H. Miller brand in the Western U.S. It plans to acquire Koons in the Washington, D.C. area in late 2023 or early 2024. Asbury generated $15.4 billion of revenue in 2022 and is based in the Atlanta area. The firm targets about $32 billion in 2025.

Executives

Daniel Clara	officer: SVP, Operations	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Philip F Maritz	director	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
George A Villasana	officer: VP & General Counsel	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Miran Maric	officer: SVP, Strategy & Innovation	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Bridget Ryan Berman	director	161 FALCON ROAD, GUILFORD CT 06437
David W Hult	officer: EVP & COO	800 GESSNER, SUITE 500, HOUSTON TX 77024
Jed Milstein	officer: VP & CHRO	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Nathan Edward Briesemeister	officer: VP, Controller & CAO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Terry Hilliard C. Iii	director	ONE SW COLUMBIA ST STE 1200, PORTLAND OR 97258
Michael Welch	officer: SVP & CFO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
David C Abrams	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Partners Ii, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital, Llc	10 percent owner	222 BERKELEY ST., 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, Llc	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116