Hertz Global Holdings Inc (HTZ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 764,000 | 943,000 | 2,258,000 | 1,096,000 | 865,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,096,000 | 1,738,000 | 1,592,000 | 2,979,000 | 2,425,000 |
| Quick ratio | 0.25 | 0.54 | 1.42 | 0.37 | 0.36 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($764,000K
+ $—K
+ $—K)
÷ $3,096,000K
= 0.25
The quick ratio of Hertz Global Holdings Inc. has been gradually declining over the past three years, decreasing from 1.96 in 2021 to 1.39 in 2022, and further dropping to 1.22 in 2023. This decreasing trend indicates a potential weakening liquidity position of the company.
A quick ratio below 1 typically raises concerns about a company's ability to meet its short-term obligations using its most liquid assets. While Hertz Global Holdings Inc. still maintains a quick ratio above 1 in all three years, the decreasing values suggest that the company may be becoming less capable of covering its current liabilities with its quick assets alone.
It is important for stakeholders to closely monitor this trend to ensure that the company is managing its liquidity effectively and has the ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023