Avis Budget Group Inc (CAR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,139,000 | 1,886,000 | 1,847,000 | 1,795,000 | 2,145,000 |
| Total current liabilities | US$ in thousands | 2,659,000 | 2,574,000 | 2,408,000 | 2,053,000 | 2,225,000 |
| Current ratio | 0.80 | 0.73 | 0.77 | 0.87 | 0.96 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,139,000K ÷ $2,659,000K
= 0.80
The current ratio of Avis Budget Group Inc has shown a declining trend over the past five years, indicating a potential deterioration in the company's liquidity position. The current ratio stood at 0.80 as of December 31, 2023, down from 0.73 in the previous year and significantly lower compared to 0.96 in 2019.
A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets alone. A decreasing current ratio over time may signal inefficiencies in managing current assets and liabilities or potential cash flow issues.
It is essential for investors and creditors to monitor the current ratio closely, as a low ratio may indicate financial distress or an inability to cover short-term obligations. Avis Budget Group Inc may need to proactively manage its working capital and liquidity position to improve its current ratio and ensure its financial health in the future.
Peer comparison
Dec 31, 2023