Sonic Automotive Inc (SAH)

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 44,000 17,600 67,200 15,100 28,900 34,600 119,700 160,200 229,200 139,000 327 360 299,400 220,100 239,600 77,200 170,300 125,739 115,724 181,780
Short-term investments US$ in thousands — — 672,400 320,000 345,000 300,000 287,000 272,000 272,000 32,000 125,500 125,500 99,800 100,000 17 33 13 83,900 83,900 100,000
Receivables US$ in thousands 495,900 436,600 441,200 420,600 528,100 431,500 400,600 374,800 462,400 360,600 345,900 351,500 401,100 278,008 356,850 373,518 371,700 286,938 322,703 200,876
Total current liabilities US$ in thousands 2,637,700 2,538,500 2,651,000 2,299,700 2,292,900 2,009,200 2,004,400 2,057,000 1,845,400 1,718,500 1,883,100 1,869,200 1,891,700 1,428,400 1,635,800 1,781,330 1,831,400 1,629,020 1,748,180 2,013,040
Quick ratio 0.20 0.18 0.45 0.33 0.39 0.38 0.40 0.39 0.52 0.31 0.25 0.26 0.42 0.42 0.36 0.25 0.30 0.30 0.30 0.24

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 fluctuated over the analyzed period, ranging from a low of 0.18 to a high of 0.52. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

The quick ratio was below 1 for most of the periods, indicating that Sonic Automotive Inc may have had challenges in meeting its short-term obligations with its readily available assets. A quick ratio below 1 may raise concerns about the company's liquidity and ability to cover its immediate liabilities.

There were periods where the quick ratio improved, such as in December 2022 and June 2024 when the quick ratio increased to 0.52 and 0.45, respectively. These improvements suggest a better ability to cover short-term obligations without relying heavily on inventory.

However, the quick ratio dropped to its lowest levels in September 2024, indicating potential liquidity challenges during that period. It is important for Sonic Automotive Inc to closely monitor its quick ratio and ensure it maintains a healthy level to meet its short-term financial obligations effectively.