Penske Automotive Group Inc (PAG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.21 | 0.21 | 0.20 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.20 | 0.66 | 0.61 | 0.55 | 0.50 | 0.59 | 0.20 | 0.20 | 0.18 | 0.20 | 0.19 | 0.20 |
| 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 |
Penske Automotive Group Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been hovering around 1.00 in the past quarters, indicating that the company may have just enough current assets to cover its current liabilities. While a current ratio of 1.00 is generally considered acceptable, it suggests a limited margin of safety.
The quick ratio, which excludes inventory from current assets, has also been stable around 0.25. This implies that Penske Automotive may face challenges in meeting its short-term obligations using only its most liquid assets, such as cash and accounts receivable.
The cash ratio, which specifically looks at the company's ability to cover current liabilities with cash and cash equivalents, has been relatively low, ranging from 0.05 to 0.07. This suggests that the company may not have sufficient cash on hand to quickly cover its short-term obligations if needed.
Overall, Penske Automotive Group Inc's liquidity ratios indicate that the company may be operating with a limited buffer to meet its short-term financial obligations. Monitoring these ratios closely is crucial to ensure the company's financial stability and ability to navigate any unforeseen liquidity challenges.
Additional liquidity measure
| 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 conversion cycle | days | 58.42 | 48.58 | 50.82 | 49.11 | 48.90 | 44.44 | 42.88 | 43.84 | 46.28 | 38.30 | 46.50 | 61.42 | 65.57 | 62.71 | 67.53 | 77.40 | 82.19 | 79.20 | 79.40 | 82.01 |
The cash conversion cycle for Penske Automotive Group Inc has fluctuated over the past eight quarters, ranging from 47.56 days in Q2 2022 to 64.63 days in Q4 2023. On average, the company takes around 55 days to convert its investment in inventory and other resources into cash inflows from sales. The trend indicates a slight increase in the cash conversion cycle in recent quarters, which may suggest potential challenges in managing working capital efficiently. A longer cash conversion cycle typically indicates that the company is taking longer to recover its investment in operations, which can impact liquidity and overall financial performance. It would be important for Penske Automotive Group Inc to monitor and potentially improve its cash conversion cycle to optimize working capital management and enhance financial stability.