Group 1 Automotive Inc (GPI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,497,300 | 2,791,300 | 1,985,300 | 1,666,200 | 2,004,200 |
| Total current liabilities | US$ in thousands | 3,396,800 | 2,505,700 | 1,921,400 | 1,543,600 | 1,842,700 |
| Current ratio | 1.03 | 1.11 | 1.03 | 1.08 | 1.09 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,497,300K ÷ $3,396,800K
= 1.03
The current ratio for Group 1 Automotive Inc has experienced fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.09, indicating that the company had $1.09 in current assets available for every $1 in current liabilities. The ratio decreased slightly to 1.08 by December 31, 2021, and further dropped to 1.03 by December 31, 2022, which may suggest a decrease in the company's ability to meet its short-term obligations.
However, there was an improvement in the current ratio by December 31, 2023, where it increased to 1.11, indicating a stronger position in terms of current asset liquidity relative to current liabilities. Nonetheless, the ratio decreased back to 1.03 by December 31, 2024, showing a potential cause for concern regarding the company's short-term liquidity position.
Overall, the current ratio trend for Group 1 Automotive Inc shows some variations over the years, with a mix of improvements and declines. It is important for stakeholders to closely monitor these fluctuations and assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024