Vroom (VRM) Debt-to-Equity : 10.09 (As of Dec. 2023)

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What is Vroom Debt-to-Equity?

Vroom's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $753.6 Mil. Vroom's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $479.4 Mil. Vroom's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $122.2 Mil. Vroom's debt to equity for the quarter that ended in Dec. 2023 was 10.09.

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 Vroom's Debt-to-Equity or its related term are showing as below:

VRM' s Debt-to-Equity Range Over the Past 10 Years
Min: -0.4 Med: 0.76 Max: 10.09
Current: 10.09

During the past 6 years, the highest Debt-to-Equity Ratio of Vroom was 10.09. The lowest was -0.40. And the median was 0.76.

VRM's Debt-to-Equity is ranked worse than
99.23% of 1174 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs VRM: 10.09

Vroom Debt-to-Equity Historical Data

The historical data trend for Vroom'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.

* Premium members only.

Vroom Debt-to-Equity Chart

Vroom Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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-0.30

0.28

1.25

2.07

10.09

Vroom Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															2.07	2.77	3.31	4.89	10.09

Competitive Comparison of Vroom's Debt-to-Equity

For the Auto & Truck Dealerships subindustry, Vroom'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.

Vroom's Debt-to-Equity Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Vroom's Debt-to-Equity falls into.

Vroom Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Vroom's Debt to Equity Ratio for the fiscal year that ended in Dec. 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
	=	(753.593	+	479.356)	/	122.151
	=	10.09

Vroom's Debt to Equity Ratio for the quarter that ended in Dec. 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
	=	(753.593	+	479.356)	/	122.151
	=	10.09

Vroom (NAS:VRM) 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.

Vroom Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Vroom's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Vroom (VRM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Vroom Inc (NAS:VRM) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

VRM:Mexico

Address

3600 West Sam Houston Parkway South, Floor 4, Houston, TX, USA, 77042

Website

https://www.vroom.com

Vroom Inc is an end-to-end e-commerce platform for the used vehicle industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its three reportable segments are: The E-commerce segment represents retail sales of used vehicles through its e-commerce platform and fees earned on sales of value-added products associated with those vehicle sales, The Wholesale segment represents sales of used vehicles through wholesale channels, and The Retail Financing segment represents UACC's operations with its network of third-party dealership customers.

Executives

Thomas H Shortt	officer: Chief Operating Officer	C/O VROOM INC, 1375 BROADWAY, 11TH FLOOR, NEW YORK NY 10018
Agnieszka Zakowicz	officer: Principal Accounting Officer	C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Robert R. Krakowiak	officer: Chief Financial Officer	633 NATALIE LANE, NORTHVILLE MI 48167
Mylod Robert J Jr	director
Patricia Moran	officer: See remarks	GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Carol Denise Stott	officer: See remarks	C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Laura W Lang	director	DIGITAS INC., 800 BOYLSTON STREET, BOSTON MA 02199
Timothy M Crow	director	2455 PACES FERRY ROAD, NW, ATLANTA GA 30339
Paul J. Hennessy	director, officer: Chief Executive Officer	C/O SHUTTERSTOCK, INC., 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Catterton Management Company, L.l.c.	director, 10 percent owner	599 WEST PUTNAM AVENUE, GREENWICH CT 06830
David K. Jones	officer: Chief Financial Officer	1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Scott Arnold Dahnke	director, 10 percent owner	599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Cgp2 Lone Star, L.p.	10 percent owner	599 WEST PUTNAM AVENUE, GREENWICH CT 06930
Frederick Terrell	director	17 STATE STREET, NEW YORK NY 10004
Paula B Pretlow	director	C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067