Penske Automotive Group Inc (PAG)

Quick 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
Cash	US$ in thousands	96,400	104,400	119,600	100,600	106,500	92,300	154,900	170,300	100,700	119,200	165,200	94,600	49,500	92,700	159,300	431,900	28,100	77,500	43,800	43,500
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	1,668,000	1,604,000	1,554,000	1,500,000	1,465,000	—	—	—	—	—	—
Receivables	US$ in thousands	1,114,600	958,800	890,600	920,200	906,700	831,300	774,300	835,200	734,000	737,700	913,300	861,500	806,900	848,200	756,600	616,300	960,300	967,300	944,400	1,034,100
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
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

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 remained relatively stable over the past eight quarters, ranging from 0.24 to 0.26. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term obligations if they all came due at once.

With a quick ratio consistently below 1.0, Penske Automotive Group Inc may have limited liquidity to cover its immediate liabilities with its quick assets. It is important for investors and analysts to monitor the trend of the quick ratio over time to assess the company's liquidity position and financial health. Further analysis of the company's cash management practices and ability to convert current assets into cash quickly may provide insights into its liquidity management strategies.