Hertz Global Holdings Inc (HTZ)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,133,000 | 764,000 | 943,000 | 2,258,000 | 1,096,000 |
| Short-term investments | US$ in thousands | — | 10,000 | 140,000 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 642,000 | 3,096,000 | 1,738,000 | 1,592,000 | 2,979,000 |
| Quick ratio | 1.76 | 0.25 | 0.62 | 1.42 | 0.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,133,000K
+ $—K
+ $—K)
÷ $642,000K
= 1.76
Analyzing the quick ratio of Hertz Global Holdings Inc over the past five years reveals fluctuations in the company's ability to meet its short-term financial obligations with its most liquid assets.
As of December 31, 2020, the quick ratio stood at a relatively low 0.37, indicating a potential liquidity concern as the company may have had difficulty covering its current liabilities with its quick assets alone.
However, there was a significant improvement in the quick ratio by December 31, 2021, reaching a healthier level of 1.42. This implies that the company had improved its ability to meet short-term obligations with its liquid assets, potentially reflecting better cash management or reduced current liabilities.
The quick ratio declined to 0.62 by December 31, 2022, suggesting a slight deterioration in liquidity compared to the previous year. This decrease may raise concerns about the company's short-term liquidity position and its ability to cover current obligations promptly.
By December 31, 2023, the quick ratio further dropped to a low 0.25, signaling a pronounced decline in the company's short-term liquidity position. This may indicate difficulties in meeting immediate financial obligations with available quick assets, signaling potential liquidity challenges.
However, there was a substantial improvement in the quick ratio by December 31, 2024, surging to a strong 1.76. This significant increase suggests that Hertz Global Holdings Inc greatly bolstered its liquidity position, enhancing its ability to cover short-term liabilities with its quick assets efficiently.
In conclusion, the analysis of Hertz Global Holdings Inc's quick ratio reveals varying levels of liquidity over the five-year period, with notable fluctuations year-on-year. The fluctuations may reflect changes in the company's cash management practices, current asset composition, and overall financial health. Investors and stakeholders should closely monitor these trends to gauge the company's ability to meet short-term obligations.
Peer comparison
Dec 31, 2024