Caterpillar Inc (CAT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,978,000 | 7,004,000 | 9,254,000 | 9,352,000 | 8,292,000 |
| Short-term investments | US$ in thousands | 1,900,000 | — | 964,000 | 9,352,000 | — |
| Total current liabilities | US$ in thousands | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 | 26,621,000 |
| Cash ratio | 0.26 | 0.22 | 0.34 | 0.73 | 0.31 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,978,000K
+ $1,900,000K)
÷ $34,728,000K
= 0.26
The cash ratio for Caterpillar Inc. has fluctuated over the past five years, with values ranging from 0.18 to 0.26. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In 2023, the cash ratio was 0.23, slightly higher than the previous year's ratio of 0.18. This improvement suggests that Caterpillar Inc. had a better proportion of cash and cash equivalents relative to its current liabilities in 2023 compared to 2022.
Comparing the 2023 ratio with the ratios from 2021, 2020, and 2019, we observe that the cash ratio in 2023 was lower than 2021 (0.24) and 2020 (0.26) but higher than 2019 (0.21). This indicates some variability in the company's liquidity position over the years.
Overall, the cash ratio for Caterpillar Inc. in 2023 indicates that the company has a moderate ability to cover its short-term liabilities with its available cash reserves. Investors and creditors may interpret this ratio to assess the company's liquidity risk and financial strength.
Peer comparison
Dec 31, 2023