Avis Budget Group Inc (CAR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,034,000 | 2,139,000 | 1,886,000 | 1,847,000 | 1,795,000 |
| Total current liabilities | US$ in thousands | 2,720,000 | 2,659,000 | 2,574,000 | 2,408,000 | 2,053,000 |
| Current ratio | 0.75 | 0.80 | 0.73 | 0.77 | 0.87 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,034,000K ÷ $2,720,000K
= 0.75
The current ratio of Avis Budget Group Inc has been showing a declining trend over the past five years, from 0.87 as of December 31, 2020, to 0.75 as of December 31, 2024. This indicates a decrease in the company's ability to cover its short-term liabilities with its current assets. While a current ratio below 1.0 may signal potential liquidity concerns, it is essential to consider industry norms and the company's specific circumstances in evaluating the adequacy of its liquidity position. Further analysis of Avis Budget Group Inc's cash flow management and working capital efficiency may provide additional insights into its financial health.
Peer comparison
Dec 31, 2024