Avis Budget Group Inc (CAR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 534,000 | 555,000 | 570,000 | 534,000 | 692,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,720,000 | 2,659,000 | 2,574,000 | 2,408,000 | 2,053,000 |
| Quick ratio | 0.20 | 0.21 | 0.22 | 0.22 | 0.34 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($534,000K
+ $—K
+ $—K)
÷ $2,720,000K
= 0.20
The quick ratio of Avis Budget Group Inc has shown a declining trend over the past five years. Starting at 0.34 on December 31, 2020, the ratio decreased to 0.22 by December 31, 2021, and remained at the same level for the subsequent two years. By the end of December 31, 2024, the quick ratio further declined to 0.20.
A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. This downward trend in the quick ratio suggests a potential liquidity concern for Avis Budget Group Inc as its ability to cover immediate liabilities with its quick assets has weakened over the years.
It is recommended for the company to closely monitor and manage its liquidity position to ensure it has sufficient liquid assets to meet its short-term obligations and maintain financial stability.
Peer comparison
Dec 31, 2024