Asbury Automotive Group Inc (ABG)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	3,137,900	3,104,500	3,218,300	2,922,400	3,057,100	2,054,900	2,003,900	2,050,200	1,909,800	1,812,600	1,601,500	1,813,900	1,929,400	1,150,500	1,132,500	1,317,600	1,405,700	1,298,000	1,591,700	1,753,200
Total current liabilities	US$ in thousands	2,836,300	2,594,200	2,565,500	2,757,400	2,875,700	994,500	1,049,600	1,068,300	1,033,400	1,158,700	1,156,900	1,584,800	1,598,000	659,200	759,300	1,048,700	1,223,400	1,212,700	893,200	1,186,000
Current ratio		1.11	1.20	1.25	1.06	1.06	2.07	1.91	1.92	1.85	1.56	1.38	1.14	1.21	1.75	1.49	1.26	1.15	1.07	1.78	1.48

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,137,900K ÷ $2,836,300K
= 1.11

The current ratio of Asbury Automotive Group Inc has displayed fluctuations over the past few years, ranging from a low of 1.06 to a high of 2.07. This ratio measures the company's ability to cover its short-term liabilities with its short-term assets. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities.

Analyzing the trend, the current ratio improved from 1.48 as of March 31, 2020, to 2.07 as of September 30, 2023, demonstrating a strengthening ability to meet its short-term obligations. However, the ratio declined slightly to 1.06 by December 31, 2023, indicating a potential liquidity strain.

Further fluctuations were observed in subsequent periods, with the ratio recovering to 1.25 as of June 30, 2024. It's essential for investors and stakeholders to monitor the current ratio closely, as significant changes in this ratio could signal changes in the company's liquidity position and financial health.