Avis Budget Group Inc (CAR)
Quick ratio
| 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 | US$ in thousands | 555,000 | 572,000 | 571,000 | 548,000 | 570,000 | 581,000 | 579,000 | 550,000 | 534,000 | 886,000 | 1,324,000 | 576,000 | 692,000 | 1,564,000 | 1,258,000 | 679,000 | 686,000 | 615,000 | 534,000 | 540,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 900,000 | 918,000 | 897,000 | 801,000 | 810,000 | 869,000 | 871,000 | 779,000 | 775,000 | 813,000 | 797,000 | 786,000 | 647,000 | 601,000 | 537,000 | 712,000 | 911,000 | 872,000 | 920,000 | 915,000 |
| Total current liabilities | US$ in thousands | 2,659,000 | 2,763,000 | 2,844,000 | 2,749,000 | 2,574,000 | 2,746,000 | 2,771,000 | 2,702,000 | 2,408,000 | 2,498,000 | 2,467,000 | 2,190,000 | 2,053,000 | 2,166,000 | 2,103,000 | 2,263,000 | 2,225,000 | 2,290,000 | 2,669,000 | 2,258,000 |
| 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 |
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 some variability over the quarters provided in the table. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities.
From Q1 2022 to Q1 2023, the quick ratio fluctuated between 0.65 and 0.81, with the lowest point in Q1 2022 and the highest in Q3 2023. Generally, a higher quick ratio is considered more favorable as it suggests a stronger ability to cover short-term liabilities. However, a quick ratio that is too high may indicate an inefficient use of assets.
Overall, Avis Budget Group Inc's quick ratio has been somewhat volatile but has generally remained above 0.7, indicating a reasonable ability to meet its short-term obligations with its current liquid assets. It would be important for the company to closely monitor its quick ratio and aim for stability and consistency over time.
Peer comparison
Dec 31, 2023