Penske Automotive Group Inc (PAG)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 72,400 | 91,900 | 115,100 | 116,900 | 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 |
| 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 | 6,485,900 | 6,754,300 | 6,172,900 | 5,910,100 | 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 |
| Cash ratio | 0.01 | 0.01 | 0.02 | 0.02 | 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 |
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 fluctuations over the specified period, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In March 2020, the cash ratio was 0.08, suggesting that the company had $0.08 in cash for every $1 of current liabilities. Subsequently, the ratio decreased to 0.03 in June 2020, indicating a potential liquidity challenge during that period.
However, there was a significant improvement in the cash ratio to 0.38 by September 2020, reflecting a stronger cash position relative to short-term obligations. The ratio remained relatively stable around the 0.30s range until December 2021.
In the first half of 2022, the ratio increased slightly to 0.40, indicating a healthy liquidity position. This upward trend continued in the following quarters, reaching 0.47 by September 2021.
Unexpectedly, the cash ratio dropped to 0.02 in December 2021, reflecting a significant decrease in cash reserves relative to current liabilities. This decline was sustained throughout 2022 and into 2023, with the ratio consistently at 0.02.
By the end of 2024, the cash ratio further decreased to 0.01, suggesting a potential liquidity strain for Penske Automotive Group Inc. This diminishing trend highlights the importance of closely monitoring the company's cash management and liquidity position to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024