Group 1 Automotive Inc (GPI)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,497,300 | 3,625,700 | 3,170,700 | 2,834,800 | 2,791,300 | 1,775,200 | 2,348,900 | 2,097,700 | 1,985,300 | 1,695,100 | 1,676,300 | 1,647,500 | 1,666,200 | 1,570,800 | 1,689,800 | 1,911,200 | 2,004,200 | 1,916,600 | 1,834,600 | 2,399,300 |
| Total current liabilities | US$ in thousands | 3,396,800 | 3,623,900 | 3,097,700 | 2,722,000 | 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 |
| Current ratio | 1.03 | 1.00 | 1.02 | 1.04 | 1.11 | 0.82 | 1.11 | 1.02 | 1.03 | 1.03 | 1.00 | 1.02 | 1.08 | 1.50 | 1.33 | 1.12 | 1.09 | 1.06 | 1.03 | 0.91 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,497,300K ÷ $3,396,800K
= 1.03
Group 1 Automotive Inc's current ratio has shown fluctuations over the past few years. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
From March 31, 2020, to September 30, 2021, the current ratio consistently increased from 0.91 to 1.50, indicating an improving liquidity position and better ability to meet short-term obligations.
However, there was a notable drop in the current ratio to 0.82 on September 30, 2023, which suggests a potential liquidity strain. This decrease could be due to various factors such as declining current assets relative to current liabilities or an increase in short-term obligations.
Despite the decline in the current ratio in the third quarter of 2023, the ratio recovered and stabilized around 1.00 to 1.11 from June 30, 2024, to December 31, 2024. This indicates that Group 1 Automotive Inc's current assets continued to be sufficient to cover its short-term liabilities during this period.
In conclusion, while the current ratio experienced fluctuations, Group 1 Automotive Inc generally maintained a reasonable level of liquidity over the analyzed periods, with the ability to meet its short-term obligations with its current assets.
Peer comparison
Dec 31, 2024