Penske Automotive Group Inc (PAG)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,927,800 | 6,178,800 | 6,079,200 | 5,810,600 | 5,679,700 | 4,978,600 | 5,086,400 | 4,822,900 | 4,664,200 | 4,210,300 | 4,132,300 | 4,265,900 | 4,075,400 | 3,576,700 | 4,142,300 | 4,358,900 | 4,408,800 | 4,349,400 | 4,418,400 | 5,396,100 |
| 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 |
| Current ratio | 0.91 | 0.91 | 0.98 | 0.98 | 1.00 | 1.01 | 1.00 | 1.01 | 0.99 | 0.98 | 0.98 | 0.97 | 0.95 | 0.93 | 0.94 | 0.95 | 0.94 | 1.06 | 0.94 | 1.03 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,927,800K ÷ $6,485,900K
= 0.91
The current ratio of Penske Automotive Group Inc has shown some fluctuations over the past several quarters, ranging from a low of 0.91 as of September 30, 2024, to a high of 1.06 as of September 30, 2020. The current ratio represents the company's ability to meet its short-term obligations with its current assets.
An ideal current ratio is generally considered to be around 2, indicating that the company has twice as many current assets as current liabilities. However, Penske Automotive Group Inc's current ratio has been consistently below this benchmark, indicating a potential risk in its ability to cover its short-term liabilities.
Although the current ratio has shown some variability, it has generally trended within a narrow range between 0.91 and 1.06 over the observed period. This indicates that the company may be managing its short-term liquidity position relatively effectively, even though the ratio is consistently below the ideal threshold of 2.
Investors and stakeholders should continue to monitor Penske Automotive Group Inc's current ratio over time to ensure that the company maintains a healthy balance between its current assets and liabilities to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024