Asbury Automotive Group Inc (ABG)
Quick ratio
| 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 | US$ in thousands | 42,200 | 41,600 | 77,500 | 296,800 | 231,900 | 138,500 | 97,400 | 281,900 | 176,400 | 330,600 | 102,300 | 27,800 | 1,400 | 4,100 | 613,200 | 388,600 | 3,500 | 1,800 | 9,600 | 10,900 |
| Short-term investments | US$ in thousands | 6,200 | 7,400 | 10,300 | 5,500 | 5,400 | 7,900 | 10,800 | 12,500 | 11,000 | — | — | — | 0 | — | — | — | 11,000 | — | — | — |
| Receivables | US$ in thousands | 226,100 | 202,500 | 175,700 | 166,600 | 171,900 | 177,900 | 176,600 | 186,700 | 229,800 | 106,600 | 112,900 | 136,800 | 155,500 | 126,400 | 87,700 | 89,400 | 136,200 | 112,500 | 117,300 | 115,100 |
| Total current liabilities | US$ in thousands | 2,875,700 | 994,500 | 1,049,600 | 1,068,300 | 1,033,400 | 1,158,700 | 1,156,900 | 1,584,800 | 1,597,900 | 659,200 | 759,300 | 1,048,700 | 1,223,400 | 1,212,700 | 893,200 | 1,181,900 | 1,247,000 | 1,235,100 | 1,272,600 | 1,416,800 |
| 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 |
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 displayed fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2023, the quick ratio was 0.33, indicating that the company had only $0.33 of liquid assets available to cover each dollar of its current liabilities. This could raise concerns about Asbury Automotive Group Inc's short-term liquidity position and its ability to meet its immediate financial obligations.
Comparing this to previous quarters, there has been a significant decrease from the previous quarter (Q3 2023) where the quick ratio was relatively higher at 0.80. This substantial decline may signal a potential worsening liquidity situation or an increase in short-term obligations that the company needs to address.
Furthermore, when looking at the trend over the past year, there seems to have been volatility in the quick ratio, with fluctuations seen from quarter to quarter. In general, a quick ratio below 1.0 may indicate that the company may have difficulty meeting its short-term debt obligations using its liquid assets alone.
It is essential for stakeholders and investors to closely monitor Asbury Automotive Group Inc's quick ratio to assess its short-term liquidity health and financial stability, especially considering the recent decline in Q4 2023.
Peer comparison
Dec 31, 2023