Asbury Automotive Group Inc (ABG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,400 | 45,700 | 235,300 | 178,900 | 1,400 |
| Short-term investments | US$ in thousands | 14,400 | 6,200 | 5,400 | 11,000 | 1,100 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,836,300 | 2,875,700 | 1,033,400 | 1,598,000 | 1,223,400 |
| Quick ratio | 0.03 | 0.02 | 0.23 | 0.12 | 0.00 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,400K
+ $14,400K
+ $—K)
÷ $2,836,300K
= 0.03
The quick ratio of Asbury Automotive Group Inc has shown fluctuating values over the past five years. It was at a concerning low of 0.00 as of December 31, 2020, indicating the company's inability to cover its short-term liabilities with its most liquid assets. Over the following years, the quick ratio improved but remained relatively low, reaching 0.12 as of December 31, 2021, and 0.23 as of December 31, 2022. However, in the subsequent years, there was a significant decrease in the quick ratio to 0.02 as of December 31, 2023, and a slight rise to 0.03 as of December 31, 2024.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. Generally, a quick ratio of 1 or higher is considered healthy, indicating that the company can comfortably meet its short-term liabilities. Asbury Automotive Group Inc's quick ratio figures suggest that the company may have liquidity challenges and could potentially face difficulties in meeting its short-term obligations without relying on outside sources of liquidity. Further analysis of the company's cash flow and liquidity management may be warranted to address these concerns.
Peer comparison
Dec 31, 2024