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.
Peer comparison
Dec 31, 2023