Asbury Automotive Group Inc (ABG)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 1.29 1.17 1.20 1.15
Quick ratio 0.10 0.25 0.25 0.44 0.40 0.28 0.25 0.30 0.26 0.66 0.28 0.16 0.13 0.11 0.78 0.40 0.12 0.09 0.10 0.09
Cash ratio 0.02 0.05 0.08 0.28 0.23 0.13 0.09 0.19 0.12 0.50 0.13 0.03 0.00 0.00 0.69 0.33 0.01 0.00 0.01 0.01

Asbury Automotive Group Inc's liquidity ratios indicate the company's ability to meet its short-term obligations with its current assets. The current ratio has fluctuated over the quarters, ranging from a low of 1.06 to a high of 2.07, with the latest value at 1.06 in Q4 2023. A current ratio above 1.0 typically suggests that the company can cover its current liabilities with its current assets, but a ratio significantly above 1.0 may indicate an inefficient use of assets.

The quick ratio, which excludes inventory from current assets, has also varied, with a low of 0.33 and a high of 0.89. The latest quick ratio stands at 0.33 in Q4 2023, indicating a lower level of liquidity compared to the current ratio. A quick ratio below 1.0 may suggest that the company may struggle to meet its short-term obligations without relying on selling inventory.

The cash ratio, which is the most conservative measure of liquidity, has also shown fluctuations, with a range of 0.25 to 0.73. In Q4 2023, Asbury Automotive Group Inc's cash ratio was at 0.25, indicating that the company may have limited cash to cover its current liabilities. A cash ratio below 1.0 signifies that the company may not have enough cash to meet its short-term obligations.

In summary, Asbury Automotive Group Inc's liquidity ratios have displayed variability over the quarters, with the current ratio showing a more stable trend compared to the quick and cash ratios. Investors and creditors may want to monitor these ratios to assess the company's ability to manage its short-term financial obligations effectively.


Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 54.44 43.20 40.84 36.65 28.09 30.66 32.73 33.58 34.03 23.79 32.79 50.47 56.00 60.43 45.62 69.20 61.47 68.96 74.41 79.31

The cash conversion cycle of Asbury Automotive Group Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 54.44 days, which was higher compared to the previous quarter at 43.20 days in Q3 2023. This indicates that it took the company longer to convert its investments in inventory and receivables into cash during this period.

Looking at the trend, there has been a general increase in the cash conversion cycle since Q1 2023, where it was at 36.65 days. This suggests a potential inefficiency in managing the company's working capital during the later quarters in 2023.

Comparing to the same quarter in the previous year, the cash conversion cycle has significantly increased from 28.09 days in Q4 2022 to 54.44 days in Q4 2023. This sharp rise indicates a possible deterioration in the efficiency of Asbury Automotive Group Inc's operations over the year.

Overall, the rising trend in the cash conversion cycle of Asbury Automotive Group Inc highlights the need for the company to closely monitor and manage its working capital components, particularly inventory and receivables, to improve cash flow efficiency and overall financial performance.