Group 1 Automotive Inc (GPI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 34,400 | 57,200 | 47,900 | 14,900 | 87,300 |
| Short-term investments | US$ in thousands | — | 1,200 | 100 | — | 1,900 |
| Total current liabilities | US$ in thousands | 3,396,800 | 2,505,700 | 1,921,400 | 1,543,600 | 1,842,700 |
| Cash ratio | 0.01 | 0.02 | 0.02 | 0.01 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($34,400K
+ $—K)
÷ $3,396,800K
= 0.01
The cash ratio of Group 1 Automotive Inc has been fluctuating over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.05, indicating that the company had $0.05 in cash for every $1 of current liabilities. However, this ratio decreased to 0.01 by December 31, 2021, signifying a significant decline in the company's ability to cover its short-term liabilities with cash alone.
Subsequently, the cash ratio showed some improvement, reaching 0.02 by December 31, 2022, and maintaining the same level by December 31, 2023. This slight increase suggests that Group 1 Automotive Inc had enhanced its liquidity position compared to the previous year but was still not able to cover its short-term obligations adequately with cash reserves.
By December 31, 2024, the cash ratio dropped back to 0.01, indicating that the company's cash position relative to its current liabilities had decreased once again. Overall, the trend in the cash ratio underscores the importance for Group 1 Automotive Inc to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2024