Group 1 Automotive Inc (GPI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	57,200	47,900	14,900	69,000	23,800
Short-term investments	US$ in thousands	—	100	—	18,300	198,100
Total current liabilities	US$ in thousands	2,505,700	1,921,400	1,543,600	1,842,700	2,422,300
Cash ratio		0.02	0.02	0.01	0.05	0.09

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($57,200K + $—K) ÷ $2,505,700K
= 0.02

The cash ratio of Group 1 Automotive, Inc. has been relatively stable between 0.05 and 0.07 over the past five years. This ratio indicates that the company may have enough cash and cash equivalents on hand to cover a very small portion of its current liabilities. While a cash ratio of 0.05 to 0.07 suggests some liquidity cushion, it may also indicate that the company relies more on other current assets or sources of financing to meet its short-term obligations. It's important for investors and stakeholders to consider this ratio in conjunction with other liquidity and solvency metrics to get a more comprehensive view of Group 1 Automotive's financial health.