Group 1 Automotive Inc (GPI)

Current 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
Total current assets	US$ in thousands	2,791,300	2,375,100	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	2,516,300	2,386,500	2,362,130	2,433,070
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
Current ratio		1.11	1.09	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	1.04	1.00	1.01	1.00

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 fluctuated over the past eight quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. The current ratio increased gradually from Q1 2022 to Q3 2022, reaching a peak of 1.03 before dropping to 1.00 in Q2 2022.

Despite the dip in Q2 2022, Group 1 Automotive, Inc. saw an upward trend in the current ratio in the subsequent quarters, reaching 1.11 in Q4 2022. However, in Q1 2023, there was a significant drop in the current ratio to 1.02. This may indicate potential liquidity challenges or difficulties in meeting short-term obligations in that quarter.

The current ratio increased slightly in Q2 2023 and remained relatively stable at 1.09 and 1.11 in Q3 and Q4 2023, respectively. This suggests that the company may have improved its liquidity position and strengthened its ability to cover short-term liabilities in the more recent quarters.

Overall, while fluctuations were observed in Group 1 Automotive, Inc.'s current ratio over the past eight quarters, the company's current ratio has generally remained above 1, indicating that it has had sufficient current assets to cover its short-term obligations.