Hertz Global Holdings Inc (HTZ)
Cash 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 and cash equivalents | US$ in thousands | 764,000 | 594,000 | 682,000 | 728,000 | 943,000 | 1,006,000 | 1,041,000 | 1,521,000 | 2,258,000 | 2,703,000 | 1,820,000 | 1,087,000 | 1,096,000 | 1,137,000 | 1,400,000 | 1,017,000 | 865,000 | 465,000 | 415,000 | 554,000 |
| Short-term investments | US$ in thousands | — | 24,000 | 30,000 | 21,000 | — | 145,000 | 99,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,096,000 | 2,082,000 | 2,635,000 | 1,819,000 | 1,738,000 | 1,903,000 | 2,176,000 | 1,810,000 | 1,592,000 | 1,731,000 | 1,969,000 | 2,266,000 | 2,979,000 | 1,514,000 | 1,580,000 | 2,854,000 | 2,425,000 | 2,421,000 | 3,037,000 | 2,901,000 |
| Cash ratio | 0.25 | 0.30 | 0.27 | 0.41 | 0.54 | 0.60 | 0.52 | 0.84 | 1.42 | 1.56 | 0.92 | 0.48 | 0.37 | 0.75 | 0.89 | 0.36 | 0.36 | 0.19 | 0.14 | 0.19 |
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 been fluctuating over the past five quarters, ranging from 0.60 to 0.95. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover these obligations.
In Q4 2022, Hertz had a relatively high cash ratio of 0.95, suggesting a more comfortable liquidity position to meet its short-term obligations. However, this ratio declined in subsequent quarters, reaching its lowest point of 0.60 in Q3 2023, indicating a potential decrease in the company's ability to cover its short-term liabilities solely with its available cash reserves.
The cash ratio improved slightly in Q4 2023 to 0.68, but it remains below the levels observed in the previous year. This trend may raise concerns about the company's liquidity management and its ability to meet short-term financial obligations. Further analysis and monitoring of the cash ratio are advisable to assess any potential liquidity risks and the company's ability to sustain its operations effectively.
Peer comparison
Dec 31, 2023