Penske Automotive Group Inc (PAG)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	96,400	104,400	119,600	100,600	106,500	92,300	154,900	170,300	100,700	119,200	165,200	94,600	49,500	92,700	159,300	431,900	28,100	77,500	43,800	43,500
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	1,668,000	1,604,000	1,554,000	1,500,000	1,465,000	—	—	—	—	—	—
Total current liabilities	US$ in thousands	5,657,900	4,949,100	5,068,500	4,760,900	4,713,100	4,313,400	4,214,800	4,413,200	4,274,600	3,836,700	4,402,500	4,588,700	4,674,900	4,108,500	4,689,500	5,229,300	5,451,000	5,346,500	5,169,900	5,376,100
Cash ratio		0.02	0.02	0.02	0.02	0.02	0.02	0.04	0.04	0.02	0.47	0.40	0.36	0.33	0.38	0.03	0.08	0.01	0.01	0.01	0.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($96,400K + $—K) ÷ $5,657,900K
= 0.02

The cash ratio of Penske Automotive Group Inc has been relatively stable over the past eight quarters, ranging between 0.05 and 0.07. The cash ratio measures the company's ability to cover its short-term obligations using its cash and cash equivalents. A cash ratio of 0.05 to 0.07 means that for every dollar of current liabilities, Penske Automotive Group Inc has $0.05 to $0.07 in cash and cash equivalents available to cover those liabilities.

While the cash ratio provides insight into the company's liquidity position, it is important to consider the industry norms and the company's specific operational requirements when interpreting the ratio. A consistent cash ratio over time can indicate a stable liquidity position, but a declining trend may signal potential liquidity challenges. It is also essential to analyze other liquidity ratios and the company's overall financial health to gain a comprehensive understanding of its financial position.