Hertz Global Holdings Inc (HTZ)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,338,000 | 2,397,000 | 3,547,000 | 4,426,000 | 4,468,000 |
| Total current liabilities | US$ in thousands | 642,000 | 3,096,000 | 1,738,000 | 1,592,000 | 2,979,000 |
| Current ratio | 3.64 | 0.77 | 2.04 | 2.78 | 1.50 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,338,000K ÷ $642,000K
= 3.64
The current ratio of Hertz Global Holdings Inc has experienced fluctuations over the past five years, as evidenced by the data provided.
As of December 31, 2020, the company's current ratio stood at 1.50, indicating that it had $1.50 in current assets for every $1 in current liabilities. This suggests a relatively healthy liquidity position at that time.
Over the next two years, the current ratio improved significantly, reaching 2.78 by December 31, 2021, and then 2.04 by December 31, 2022. These higher ratios indicate a stronger ability to meet short-term obligations with current assets.
However, the trend reversed in the following years, with a notable decline in the current ratio. By December 31, 2023, the current ratio dropped to 0.77, falling below the ideal threshold of 1. This may signal potential liquidity challenges or difficulties in meeting short-term liabilities.
Nonetheless, the company managed to improve its liquidity position by a significant margin in the most recent period, with a current ratio of 3.64 as of December 31, 2024. This sharp increase suggests a notable improvement in the company's ability to cover its short-term obligations with current assets.
Overall, while the current ratio of Hertz Global Holdings Inc has shown fluctuations, it is essential to closely monitor future developments to assess the company's ongoing liquidity position and ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024