Hertz Global Holdings Inc (HTZ)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 764,000 | 943,000 | 2,258,000 | 1,096,000 | 865,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,096,000 | 1,738,000 | 1,592,000 | 2,979,000 | 2,425,000 |
| Cash ratio | 0.25 | 0.54 | 1.42 | 0.37 | 0.36 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($764,000K
+ $—K)
÷ $3,096,000K
= 0.25
The cash ratio of Hertz Global Holdings Inc. has declined over the three-year period from 2021 to 2023. The cash ratio was 1.59 in 2021, indicating that the company had $1.59 in cash and cash equivalents for every $1 of current liabilities. However, by the end of 2023, the cash ratio had decreased to 0.68, suggesting a significant reduction in the company's ability to cover its short-term obligations with cash.
This decline in the cash ratio may raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations. A lower cash ratio indicates that Hertz Global Holdings Inc. may be relying more on other sources of funding, such as short-term borrowing or asset sales, to meet its current liabilities.
It is important for investors and stakeholders to monitor the trend in the cash ratio closely as it provides insights into the company's liquidity management and financial health. A declining cash ratio could signal potential cash flow difficulties or operational challenges that may require attention from management to ensure the company's financial stability.
Peer comparison
Dec 31, 2023