Avis Budget Group Inc (CAR)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 534,000 | 602,000 | 515,000 | 522,000 | 559,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,720,000 | 3,326,000 | 2,866,000 | 3,074,000 | 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 |
| Quick ratio | 0.20 | 0.18 | 0.18 | 0.17 | 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 |
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 some fluctuations over the years, ranging from a low of 0.17 to a high of 0.72. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Avis Budget Group Inc's quick ratio has generally been below 1, indicating a potential risk in meeting its short-term financial obligations. The ratio improved in the third quarter of 2020 but then decreased in subsequent periods before stabilizing around 0.2 in recent quarters.
The declining trend in the quick ratio may suggest that the company's liquidity position has weakened, which could be a concern for creditors and investors. The company may need to closely monitor its liquidity management and ensure it has sufficient cash or near-cash assets to cover its short-term liabilities.
Overall, the trend in Avis Budget Group Inc's quick ratio indicates potential liquidity challenges that the company may need to address to strengthen its financial position and ensure its continued ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024