Group 1 Automotive Inc (GPI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 34,400 | 57,200 | 47,900 | 14,900 | 87,300 |
| Short-term investments | US$ in thousands | — | 1,200 | 100 | — | 1,900 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,396,800 | 2,505,700 | 1,921,400 | 1,543,600 | 1,842,700 |
| Quick ratio | 0.01 | 0.02 | 0.02 | 0.01 | 0.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($34,400K
+ $—K
+ $—K)
÷ $3,396,800K
= 0.01
The quick ratio of Group 1 Automotive Inc has experienced fluctuations over the years. As of December 31, 2020, the quick ratio stood at 0.05, indicating that the company had $0.05 in liquid assets available to cover each dollar of its current liabilities. However, by December 31, 2021, the quick ratio substantially dropped to 0.01, suggesting a significant decrease in the company's ability to meet its short-term obligations with its quick assets.
In the subsequent years, the quick ratio slightly improved, with ratios of 0.02 recorded for both December 31, 2022 and December 31, 2023. This signifies a slight enhancement in the company's liquidity position, indicating that it had $0.02 in liquid assets for every dollar of current liabilities.
By December 31, 2024, the quick ratio fell back to 0.01, implying a possible liquidity challenge for Group 1 Automotive Inc. Overall, the fluctuating trend in the quick ratio highlights the company's varying ability to quickly meet its short-term financial obligations with its readily available assets. Further analysis and monitoring of liquidity management may be warranted to ensure the company's financial stability.
Peer comparison
Dec 31, 2024