Asbury Automotive Group Inc (ABG)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	226,100	171,900	229,800	155,500	136,200
Total current liabilities	US$ in thousands	2,875,700	1,033,400	1,597,900	1,223,400	1,247,000
Quick ratio		0.10	0.40	0.26	0.13	0.12

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($42,200K + $6,200K + $226,100K) ÷ $2,875,700K
= 0.10

The quick ratio of Asbury Automotive Group Inc has shown variability over the past five years. In 2023, the quick ratio decreased to 0.33, indicating a significant decline in the company's ability to cover its current liabilities with its most liquid assets. This could raise concerns about the company's short-term financial health and ability to meet its obligations promptly.

In contrast, the quick ratio was relatively higher in 2022 at 0.89, suggesting a stronger liquidity position compared to the most recent year. This improvement indicates that Asbury Automotive Group Inc had a better ability to meet its short-term obligations with its quick assets at the end of 2022.

However, in 2021 and 2020, the quick ratio was 0.52 and 0.41, respectively, showing a lower level of liquidity compared to 2022. The declining trend in these years could raise questions about the company's efficiency in managing its current assets and liabilities.

In 2019, the quick ratio was 0.37, indicating a similar level of liquidity as in 2020. This suggests that Asbury Automotive Group Inc's ability to meet short-term obligations did not vary significantly between these two years.

Overall, the fluctuating quick ratio of Asbury Automotive Group Inc over the past five years highlights the importance of monitoring the company's liquidity position and managing its current assets and liabilities effectively to ensure financial stability.