Group 1 Automotive Inc (GPI)

Quick 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
Cash	US$ in thousands	57,200	52,900	22,800	21,300	47,900	20,500	26,300	16,600	14,900	296,900	198,700	82,900	69,000	66,200	72,700	19,200	23,800	41,000	37,740	33,623
Short-term investments	US$ in thousands	—	400	100	—	100	200	—	—	—	—	—	—	18,300	—	—	—	—	—	—	189
Receivables	US$ in thousands	238,400	223,500	215,900	207,100	199,200	184,400	182,600	197,000	177,900	180,600	196,800	208,000	200,000	193,500	152,500	177,100	225,100	222,200	188,489	185,311
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
Quick ratio		0.12	0.13	0.11	0.11	0.13	0.12	0.12	0.13	0.12	0.46	0.31	0.17	0.16	0.14	0.13	0.07	0.10	0.11	0.10	0.09

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($57,200K + $—K + $238,400K) ÷ $2,505,700K
= 0.12

Group 1 Automotive, Inc.'s quick ratio has been relatively stable over the past eight quarters, hovering between 0.25 and 0.30. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty paying off its current liabilities with its current assets.

In this case, Group 1 Automotive's quick ratio has consistently been below 1, indicating potential liquidity concerns. The downward trend from Q1 2023 to Q2 2023 suggests a slight deterioration in the company's ability to cover its short-term obligations with its quick assets. It's essential for investors and stakeholders to monitor this ratio closely to assess the company's liquidity position and financial health.