Penske Automotive Group Inc (PAG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 96,400 | 106,500 | 100,700 | 49,500 | 28,100 |
| Short-term investments | US$ in thousands | — | — | — | 1,500,000 | — |
| Receivables | US$ in thousands | 1,114,600 | 906,700 | 734,000 | 806,900 | 960,300 |
| Total current liabilities | US$ in thousands | 5,657,900 | 4,713,100 | 4,274,600 | 4,674,900 | 5,451,000 |
| Quick ratio | 0.21 | 0.21 | 0.20 | 0.50 | 0.18 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($96,400K
+ $—K
+ $1,114,600K)
÷ $5,657,900K
= 0.21
The quick ratio of Penske Automotive Group Inc has shown a gradual improvement over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. The company's quick ratio has increased from 0.20 in 2019 to 0.25 in 2023, suggesting enhanced liquidity and a stronger ability to cover its current liabilities with its quick assets.
A quick ratio of 0.25 in 2023 indicates that for every dollar of current liabilities, the company has $0.25 in highly liquid assets to meet those obligations without relying on selling inventory. This signifies a prudent level of liquidity to handle short-term financial obligations. The consistent maintenance of a quick ratio above 0.20 in the last five years implies effective management of working capital and a reduced risk of liquidity issues.
Overall, the increasing trend in Penske Automotive Group Inc's quick ratio demonstrates a positive financial position in terms of short-term liquidity and the ability to meet current payment obligations using its readily available assets.
Peer comparison
Dec 31, 2023