Penske Automotive Group Inc (PAG)

Current 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
Total current assets	US$ in thousands	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	5,334,100	5,187,500	5,075,300	5,283,200
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
Current ratio		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	0.98	0.97	0.98	0.98

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,679,700K ÷ $5,657,900K
= 1.00

The current ratio of Penske Automotive Group Inc has been relatively stable throughout the last eight quarters, ranging between 0.97 and 1.01. This indicates the company's ability to meet its short-term obligations with its current assets.

The current ratio is a measure of liquidity, with a ratio of 1.0 considered ideal as it suggests the company has enough current assets to cover its current liabilities. In Penske Automotive Group's case, the current ratio has been consistently close to or slightly above 1.0, indicating that the company has been able to comfortably cover its short-term obligations over the analyzed period.

However, the slight fluctuations in the current ratio over time may indicate changes in the company's liquidity position. It would be beneficial to monitor this ratio over time to identify any trends or potential issues in the company's ability to handle its short-term financial obligations effectively.