Avis Budget Group Inc (CAR)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 555,000 570,000 534,000 692,000 686,000
Short-term investments US$ in thousands
Receivables US$ in thousands 900,000 810,000 775,000 647,000 911,000
Total current liabilities US$ in thousands 2,659,000 2,574,000 2,408,000 2,053,000 2,225,000
Quick ratio 0.55 0.54 0.54 0.65 0.72

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($555,000K + $—K + $900,000K) ÷ $2,659,000K
= 0.55

The quick ratio of Avis Budget Group Inc has shown a declining trend over the past five years, decreasing from 0.96 in 2019 to 0.80 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over this period. A quick ratio below 1.0 suggests that the company may have difficulty in covering its short-term liabilities with its quick assets alone.

A quick ratio of 0.80 in 2023 implies that for every dollar of current liabilities, the company has $0.80 of quick assets available to cover these obligations. While the ratio has been decreasing, it is still above the critical threshold of 1.0, indicating that Avis Budget Group Inc still has some cushion to meet its short-term obligations. However, investors and creditors may monitor this ratio closely to assess the company's liquidity position and its ability to meet its short-term financial commitments.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Avis Budget Group Inc
CAR
0.55
Hertz Global Holdings Inc
HTZ
0.25
Ryder System Inc
R
0.53