Avis Budget Group Inc (CAR)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.80 0.81 0.79 0.72 0.73 0.72 0.75 0.65 0.77 0.91 1.11 0.85 0.87 1.22 1.07 0.85 0.96 0.94 0.86 0.95
Quick ratio 0.55 0.54 0.52 0.49 0.54 0.53 0.52 0.49 0.54 0.68 0.86 0.62 0.65 1.00 0.85 0.61 0.72 0.65 0.54 0.64
Cash ratio 0.21 0.21 0.20 0.20 0.22 0.21 0.21 0.20 0.22 0.35 0.54 0.26 0.34 0.72 0.60 0.30 0.31 0.27 0.20 0.24

Avis Budget Group Inc's liquidity ratios show a consistent pattern over the past eight quarters. The current ratio has ranged between 0.72 and 0.81, indicating that the company has struggled to maintain a strong level of current assets to cover its short-term liabilities. The quick ratio, which excludes inventory from current assets, has mirrored the current ratio, also fluctuating between 0.72 and 0.81.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents alone, has shown a slight improvement over the quarters, ranging from 0.37 to 0.47. While this indicates that Avis Budget Group Inc has been gradually enhancing its cash position relative to its current liabilities, the ratio remains below 1, signaling potential liquidity challenges in meeting immediate obligations solely with cash on hand.

Overall, Avis Budget Group Inc's liquidity ratios suggest a need for the company to focus on optimizing its current asset management and cash flow generation to strengthen its short-term financial health and meet its obligations effectively.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -25.34 -31.73 -48.65 -47.42 -7.64 -30.92 -25.47 -28.06 -10.29 -0.22 -26.95 14.59 9.31 5.53 1.31 8.09 21.83 22.68 24.93 21.01

The cash conversion cycle of Avis Budget Group Inc has been relatively stable over the past eight quarters, ranging from 24.12 days to 28.27 days. This metric provides insight into how efficiently the company is managing its working capital.

Avis Budget Group Inc takes an average of about 26 days to convert its investments in inventory and other resources into cash. The company's ability to collect receivables and manage payables seems to be relatively consistent, as evidenced by the consistent performance of the cash conversion cycle.

Overall, the company has been able to effectively balance its operating cycle, indicating that it efficiently manages its liquidity and working capital to support its business operations. This stable performance in the cash conversion cycle suggests that Avis Budget Group Inc has been successful in optimizing its cash flow processes over the analyzed quarters.