Group 1 Automotive Inc (GPI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,791,300	1,985,300	1,666,200	2,004,200	2,516,300
Total current liabilities	US$ in thousands	2,505,700	1,921,400	1,543,600	1,842,700	2,422,300
Current ratio		1.11	1.03	1.08	1.09	1.04

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,791,300K ÷ $2,505,700K
= 1.11

Group 1 Automotive, Inc.'s current ratio has shown fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

In 2023, the current ratio improved to 1.11 from 1.03 in 2022, indicating that the company had a better ability to meet its short-term liabilities with its current assets. This increase suggests improved liquidity and financial health in the most recent year.

Comparing the current ratio to previous years, we observe that it was also higher than in 2021 (1.08), 2020 (1.09), and 2019 (1.04). This trend implies that Group 1 Automotive, Inc. has been gradually enhancing its liquidity position over the years, which is a positive sign for investors and creditors.

Overall, an increasing trend in the current ratio demonstrates that the company has been managing its current assets more effectively to meet its short-term obligations. However, further analysis of the components of current assets and liabilities is needed to fully evaluate the company's liquidity position.