The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Penske Automotive Group's current ratio for the quarter that ended in Dec. 2023 was 1.00.
Penske Automotive Group has a current ratio of 1.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for Penske Automotive Group's Current Ratio or its related term are showing as below:
PAG'
s Current Ratio Range Over the Past 10 Years
Min: 0.94 Med: 1.01 Max: 1.06
Current: 1
During the past 13 years, Penske Automotive Group's highest Current Ratio was 1.06. The lowest was 0.94. And the median was 1.01.
PAG's Current Ratio is ranked worse than 82.33% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs PAG: 1.00
Penske Automotive Group Current Ratio Historical Data
The historical data trend for Penske Automotive Group's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Penske Automotive Group Current Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Current Ratio falls into.
Penske Automotive Group Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Penske Automotive Group's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Penske Automotive Group (NYSE:PAG) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Penske Automotive Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Penske Automotive Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Penske Automotive Group (Penske Automotive Group) Business Description
Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
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