Sonic Automotive Inc (SAH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 44,000 | 28,900 | 229,200 | 299,400 | 170,300 |
| Short-term investments | US$ in thousands | — | -1,000 | 272,000 | 99,800 | 13 |
| Receivables | US$ in thousands | 495,900 | 528,100 | 462,400 | 401,100 | 371,700 |
| Total current liabilities | US$ in thousands | 2,637,700 | 2,292,900 | 1,845,400 | 1,891,700 | 1,831,400 |
| Quick ratio | 0.20 | 0.24 | 0.52 | 0.42 | 0.30 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($44,000K
+ $—K
+ $495,900K)
÷ $2,637,700K
= 0.20
The quick ratio of Sonic Automotive Inc has shown fluctuations over the past five years. In December 2020, the quick ratio was 0.30, indicating that the company had $0.30 in liquid assets for every $1 of current liabilities. By December 2021, the quick ratio improved to 0.42, suggesting a better ability to meet short-term obligations without relying heavily on inventory.
In December 2022, the quick ratio increased further to 0.52, signaling improved liquidity and a stronger financial position. However, by December 2023, the quick ratio decreased to 0.24, indicating a potential liquidity challenge and a decreased ability to cover current liabilities with liquid assets.
By December 2024, the quick ratio declined even further to 0.20, signaling a significant decrease in the company's ability to meet short-term obligations. Overall, the fluctuation in Sonic Automotive Inc's quick ratio over the years indicates varying levels of liquidity and highlights the importance of closely monitoring the company's short-term financial health.
Peer comparison
Dec 31, 2024