Penske Automotive Group Inc (PAG)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 72,400 | 91,900 | 115,100 | 116,900 | 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 |
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,485,900 | 6,754,300 | 6,172,900 | 5,910,100 | 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 |
| Quick ratio | 0.01 | 0.01 | 0.02 | 0.02 | 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 |
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, also known as the acid-test ratio, is a financial metric used to evaluate a company's short-term liquidity and ability to meet its immediate obligations. It is calculated by dividing the sum of a company's cash and cash equivalents, marketable securities, and accounts receivable by its current liabilities.
Analyzing the quick ratio of Penske Automotive Group Inc based on the provided data, we observe the following trends:
1. The quick ratio fluctuated over the period, indicating variability in the company's ability to cover its current liabilities with its most liquid assets.
2. The quick ratio was relatively low in the earlier periods, notably at 0.03 in June 30, 2020, suggesting potential liquidity challenges during that time.
3. The quick ratio improved significantly in the subsequent quarters, reaching a peak of 0.47 on September 30, 2021, indicating a better ability to meet short-term obligations with liquid assets.
4. However, the quick ratio decreased in the following quarters, dropping to 0.01 by December 31, 2024, suggesting a potential decline in liquidity and raising concerns about the company's ability to cover its current liabilities efficiently.
5. The consistently low quick ratio values towards the end of the period may raise red flags regarding the company's short-term liquidity position and its ability to manage immediate financial obligations effectively.
In conclusion, the analysis of Penske Automotive Group Inc's quick ratio indicates fluctuations in the company's short-term liquidity position over the period, reflecting both improvements and potential challenges. It is essential for stakeholders to closely monitor these fluctuations and assess the company's ability to maintain adequate liquidity levels to sustain its operations effectively.
Peer comparison
Dec 31, 2024