Penske Automotive Group Inc (PAG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,927,800 | 5,679,700 | 4,664,200 | 4,075,400 | 4,408,800 |
| Total current liabilities | US$ in thousands | 6,485,900 | 5,657,900 | 4,713,100 | 4,274,600 | 4,674,900 |
| Current ratio | 0.91 | 1.00 | 0.99 | 0.95 | 0.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,927,800K ÷ $6,485,900K
= 0.91
Based on the provided data, Penske Automotive Group Inc's current ratio has shown a fluctuating trend over the past five years. The current ratio has ranged from 0.91 to 1.00 during this period.
A current ratio below 1.00 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone. In 2020 and 2021, the company's current ratio was below 1.00, suggesting potential liquidity challenges.
However, the current ratio has improved in the subsequent years, reaching 1.00 by the end of 2023. A current ratio of 1.00 typically signifies that the company's current assets are just sufficient to cover its current liabilities.
It is important to note that a current ratio of 1.00 does not necessarily mean that the company is in a strong financial position, as it is just meeting its short-term obligations. Analysts typically consider a current ratio above 1.00 as a healthier sign of liquidity.
In conclusion, while Penske Automotive Group Inc's current ratio has shown some improvement in recent years, further analysis of the company's overall liquidity and financial health would be required to assess its financial stability effectively.
Peer comparison
Dec 31, 2024