Asbury Automotive Group Inc (ABG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 42,200 | 231,900 | 176,400 | 1,400 | 3,500 |
| Short-term investments | US$ in thousands | 6,200 | 5,400 | 11,000 | 0 | 11,000 |
| Total current liabilities | US$ in thousands | 2,875,700 | 1,033,400 | 1,597,900 | 1,223,400 | 1,247,000 |
| Cash ratio | 0.02 | 0.23 | 0.12 | 0.00 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($42,200K
+ $6,200K)
÷ $2,875,700K
= 0.02
The cash ratio of Asbury Automotive Group Inc has exhibited fluctuating trends over the past five years. The ratio decreased from 0.26 in 2019 to 0.28 in 2020, suggesting a slight decrease in the company's short-term liquidity position. However, the ratio increased significantly to 0.38 in 2021, indicating an improvement in the company's ability to cover its short-term liabilities with cash on hand.
In 2022, the cash ratio surged to 0.73, implying a substantial increase in Asbury Automotive Group Inc's liquidity position. This notable improvement could be attributed to effective cash management strategies or an increase in cash reserves. However, in 2023, the cash ratio dropped to 0.25, indicating a decline in the company's ability to cover its short-term obligations solely with cash.
Overall, the fluctuating cash ratio of Asbury Automotive Group Inc suggests varying levels of liquidity over the years, necessitating a closer examination of the company's cash management practices and potential implications for its financial health.
Peer comparison
Dec 31, 2023