Penske Automotive Group Inc (PAG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 72,400 | 96,400 | 106,500 | 100,700 | 49,500 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,500,000 |
| Total current liabilities | US$ in thousands | 6,485,900 | 5,657,900 | 4,713,100 | 4,274,600 | 4,674,900 |
| Cash ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.33 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($72,400K
+ $—K)
÷ $6,485,900K
= 0.01
The cash ratio of Penske Automotive Group Inc has shown a decline in recent years based on the data provided. It stood at 0.33 as of December 31, 2020, reflecting a healthy level of liquidity with 33 cents in cash and cash equivalents for every dollar of current liabilities. However, the ratio decreased significantly to 0.02 by the end of 2021 and has remained at this level through 2022, 2023, and 2024, indicating a notable reduction in the company's ability to cover its short-term obligations with cash on hand. This downward trend may raise concerns about the company's liquidity position and its ability to meet immediate financial obligations using available cash resources. Further analysis of the company's cash management practices and working capital efficiency may be necessary to address this issue effectively.
Peer comparison
Dec 31, 2024