Hertz Global Holdings Inc (HTZ)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,338,000 | 2,245,000 | 3,015,000 | 2,909,000 | 2,397,000 | 3,297,000 | 3,489,000 | 3,256,000 | 3,547,000 | 3,494,000 | 3,632,000 | 4,253,000 | 4,426,000 | 4,998,000 | 4,903,000 | 4,019,000 | 4,468,000 | 3,727,000 | 4,440,000 | 4,625,000 |
| Total current liabilities | US$ in thousands | 642,000 | 624,000 | 2,134,000 | 2,194,000 | 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 |
| Current ratio | 3.64 | 3.60 | 1.41 | 1.33 | 0.77 | 1.58 | 1.32 | 1.79 | 2.04 | 1.84 | 1.67 | 2.35 | 2.78 | 2.89 | 2.49 | 1.77 | 1.50 | 2.46 | 2.81 | 1.62 |
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 fluctuated over the past few years, reflecting its liquidity position. The current ratio stood at 1.62 as of March 31, 2020, indicating that the company had $1.62 in current assets to cover each dollar of current liabilities.
The ratio improved significantly to 2.81 by June 30, 2020, signaling a stronger liquidity position. This improvement was maintained over the following quarters, with the ratio ranging between 2.46 and 2.89 up to September 30, 2021.
However, a slight decline was observed by the end of December 31, 2021, with the current ratio decreasing to 2.78. This decline continued into the first half of 2022, reaching a ratio of 1.67 by June 30, 2022, indicating a potential strain on liquidity.
The ratio slightly improved to 2.04 by December 31, 2022, before dropping to 0.77 by the end of December 31, 2023, falling below the industry benchmark of 1. This suggests potential difficulties in meeting short-term obligations with current assets.
By the end of December 31, 2024, the current ratio significantly increased to 3.64, indicating an improvement in liquidity and ability to cover current liabilities. This sharp increase may be attributed to changes in the company's current asset and liability composition.
Overall, the fluctuation in Hertz Global Holdings Inc's current ratio highlights variations in the company's liquidity position over the analyzed periods. It is essential for the company to maintain a healthy current ratio to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024