Avis Budget Group Inc (CAR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 555,000 | 570,000 | 534,000 | 692,000 | 686,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,659,000 | 2,574,000 | 2,408,000 | 2,053,000 | 2,225,000 |
| Cash ratio | 0.21 | 0.22 | 0.22 | 0.34 | 0.31 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($555,000K
+ $—K)
÷ $2,659,000K
= 0.21
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.
Avis Budget Group Inc's cash ratio has fluctuated over the past five years, ranging from 0.42 to 0.56. In 2023, the cash ratio was 0.47, showing a slight improvement from the previous year but still lower than the ratio in 2020. This suggests that the company had $0.47 in cash and cash equivalents for every $1 of short-term liabilities at the end of 2023.
Although the cash ratio decreased from 2020 to 2022, it remained relatively stable in the range of 0.42 to 0.56, indicating that Avis Budget Group Inc has maintained a consistent level of liquidity to cover its short-term obligations in recent years. It is important for investors and analysts to monitor this ratio to assess the company's liquidity position and its ability to navigate any potential financial challenges in the future.
Peer comparison
Dec 31, 2023