Avis Budget Group Inc (CAR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 534,000 | 555,000 | 570,000 | 534,000 | 692,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,720,000 | 2,659,000 | 2,574,000 | 2,408,000 | 2,053,000 |
| Cash ratio | 0.20 | 0.21 | 0.22 | 0.22 | 0.34 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($534,000K
+ $—K)
÷ $2,720,000K
= 0.20
Avis Budget Group Inc's cash ratio has shown a declining trend over the past five years, decreasing from 0.34 in December 2020 to 0.20 in December 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A decreasing cash ratio may indicate potential liquidity challenges or inefficiencies in managing cash resources. It is essential for the company to closely monitor and improve its liquidity position to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024