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.