Hertz Global Holdings Inc (HTZ)

Based on the data provided, Hertz Global Holdings Inc's liquidity ratios have fluctuated over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, improved significantly from 1.50 in 2020 to 2.78 in 2021, indicating a stronger liquidity position. However, there was a decrease in the current ratio to 2.04 in 2022 before a significant drop to 0.77 in 2023, which may raise concerns about the company's ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, showed a similar trend. The quick ratio increased from 0.37 in 2020 to 1.42 in 2021, reflecting improved liquidity. However, the ratio decreased to 0.62 in 2022, further dropping to 0.25 in 2023, signaling potential difficulties in meeting immediate liabilities without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, mirrored the trends seen in the quick ratio. The ratio improved from 0.37 in 2020 to 1.42 in 2021 but decreased to 0.62 in 2022 and further to 0.25 in 2023.

Overall, while there were improvements in liquidity ratios in 2021, the subsequent declines in 2022 and 2023 suggest a potential strain on Hertz Global Holdings Inc's liquidity position. The significant fluctuations in these ratios highlight the importance of monitoring the company's liquidity closely to ensure its ability to meet short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Hertz Global Holdings Inc has shown a significant improvement over the years, decreasing from 143.32 days as of December 31, 2020, to 31.10 days as of December 31, 2021, and further to 30.68 days as of December 31, 2022. This indicates that the company has been able to more efficiently convert its resources into cash during the specified periods.

Notably, by December 31, 2023, and 2024, the cash conversion cycle has reached 0.00 days, implying an exceptionally efficient cycle where the company has been able to convert its investments into cash almost immediately. This could suggest that Hertz Global Holdings Inc has streamlined its operations and improved its working capital management processes, leading to a quicker cash turnaround.

Overall, the decreasing trend in the cash conversion cycle over the years reflects positively on the company's liquidity position and operational efficiency, indicating a more effective management of its cash flow and working capital.