Group 1 Automotive Inc (GPI)

Cash 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 and cash equivalents	US$ in thousands	57,200	52,900	22,800	21,300	47,900	20,500	26,300	16,600	14,900	296,900	198,700	82,900	69,000	66,200	72,700	19,200	23,800	41,000	37,740	33,623
Short-term investments	US$ in thousands	—	400	100	—	100	200	—	—	—	—	—	—	18,300	—	—	—	—	—	—	189
Total current liabilities	US$ in thousands	2,505,700	2,174,600	2,122,300	2,054,400	1,921,400	1,647,100	1,682,400	1,618,900	1,543,600	1,046,100	1,272,000	1,712,500	1,842,700	1,812,100	1,775,100	2,640,400	2,422,300	2,397,300	2,335,340	2,436,740
Cash ratio		0.02	0.02	0.01	0.01	0.02	0.01	0.02	0.01	0.01	0.28	0.16	0.05	0.05	0.04	0.04	0.01	0.01	0.02	0.02	0.01

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. over the past eight quarters has shown fluctuations but generally remained within a narrow range. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has been relatively stable, ranging from 0.03 to 0.05.

A cash ratio of 0.03 means that for every dollar of current liabilities the company had $0.03 in cash and cash equivalents on hand to cover those liabilities. Similarly, a cash ratio of 0.05 indicates that the company had $0.05 in cash and cash equivalents for every dollar of its current liabilities.

Overall, the cash ratio of Group 1 Automotive, Inc. indicates that the company has maintained a conservative approach to managing its liquidity, ensuring that it has a sufficient cash buffer to meet its short-term obligations. However, it's essential to monitor any significant deviations or trends in the cash ratio over time to assess the company's liquidity position effectively.