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.