Penske Automotive Group Inc (PAG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 72,400 | 96,400 | 106,500 | 100,700 | 49,500 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,500,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,485,900 | 5,657,900 | 4,713,100 | 4,274,600 | 4,674,900 |
| Quick ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.33 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($72,400K
+ $—K
+ $—K)
÷ $6,485,900K
= 0.01
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Penske Automotive Group Inc, the trend of the quick ratio has been declining over the years. As of December 31, 2020, the quick ratio was 0.33, indicating that the company had $0.33 in liquid assets for every $1 of current liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.01, suggesting a significant deterioration in the company's short-term liquidity position.
A quick ratio below 1.0 typically raises concerns about a company's ability to pay off its current liabilities without having to sell off inventory or other assets. A quick ratio of 0.01 indicates that Penske Automotive Group Inc may be facing challenges in meeting its short-term financial obligations using its readily available liquid assets. This declining trend in the quick ratio highlights the importance of closely monitoring the company's liquidity position and financial health.
Peer comparison
Dec 31, 2024