Asbury Automotive Group Inc (ABG)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,400 | 60,300 | 67,200 | 29,000 | 45,700 | 41,600 | 77,500 | 296,800 | 235,300 | 141,300 | 100,100 | 284,300 | 178,900 | 330,600 | 102,300 | 27,800 | 1,400 | 4,100 | 613,200 | 388,600 |
| Short-term investments | US$ in thousands | 14,400 | 9,000 | 10,500 | 6,900 | 6,200 | 7,400 | 10,300 | 5,500 | 5,400 | 7,900 | 10,800 | 12,500 | 11,000 | — | — | — | 1,100 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,836,300 | 2,594,200 | 2,565,500 | 2,757,400 | 2,875,700 | 994,500 | 1,049,600 | 1,068,300 | 1,033,400 | 1,158,700 | 1,156,900 | 1,584,800 | 1,598,000 | 659,200 | 759,300 | 1,048,700 | 1,223,400 | 1,212,700 | 893,200 | 1,186,000 |
| Quick ratio | 0.03 | 0.03 | 0.03 | 0.01 | 0.02 | 0.05 | 0.08 | 0.28 | 0.23 | 0.13 | 0.10 | 0.19 | 0.12 | 0.50 | 0.13 | 0.03 | 0.00 | 0.00 | 0.69 | 0.33 |
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, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. The formula for calculating the quick ratio is (Current Assets - Inventory) / Current Liabilities.
Analyzing the trend of Asbury Automotive Group Inc's quick ratio from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's liquidity position.
The quick ratio started at a low of 0.33 on March 31, 2020, indicating a potential liquidity issue as the company had limited quick assets to cover its current liabilities. The ratio improved to 0.69 on June 30, 2020, suggesting a better ability to meet short-term obligations.
Subsequently, there were periods where the quick ratio fell to values of 0.00, indicating that the company's current liabilities exceeded its quick assets, potentially raising concerns about its ability to fulfill short-term obligations without relying on inventory.
However, the quick ratio showed some improvement over time, reaching values of 0.50 on September 30, 2021, and peaking at 0.28 on March 31, 2023. These improvements suggest a better liquidity position for the company during these periods.
The quick ratio decreased to 0.01 on March 31, 2024, indicating a potential deterioration in liquidity. Despite a slight increase to 0.03 by December 31, 2024, the ratio remained relatively low, signifying that Asbury Automotive Group Inc may have faced challenges in meeting its short-term obligations with quick assets during this period.
Overall, monitoring the quick ratio helps assess the company's ability to manage short-term liquidity and highlights potential liquidity concerns that may impact its financial health and operational stability.
Peer comparison
Dec 31, 2024