Caterpillar Inc (CAT)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,978,000 | 6,545,000 | 7,387,000 | 6,789,000 | 7,004,000 | 6,346,000 | 6,014,000 | 6,526,000 | 9,254,000 | 9,446,000 | 10,842,000 | 11,351,000 | 9,352,000 | 9,319,000 | 8,791,000 | 7,130,000 | 8,292,000 | 7,936,000 | 7,459,000 | 7,158,000 |
| Short-term investments | US$ in thousands | 1,900,000 | 2,550,000 | 500,000 | 250,000 | — | 2,021,000 | 659,000 | — | — | — | 10,831,000 | 11,342,000 | 9,352,000 | 9,315,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 34,728,000 | 33,124,000 | 35,314,000 | 31,842,000 | 31,531,000 | 30,202,000 | 28,963,000 | 29,532,000 | 29,847,000 | 25,976,000 | 27,508,000 | 26,578,000 | 25,717,000 | 24,978,000 | 25,231,000 | 26,516,000 | 26,621,000 | 27,201,000 | 27,735,000 | 27,388,000 |
| Cash ratio | 0.26 | 0.27 | 0.22 | 0.22 | 0.22 | 0.28 | 0.23 | 0.22 | 0.31 | 0.36 | 0.79 | 0.85 | 0.73 | 0.75 | 0.35 | 0.27 | 0.31 | 0.29 | 0.27 | 0.26 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Caterpillar Inc.'s cash ratio fluctuated over the past eight quarters, ranging from 0.11 to 0.28. In Q4 2022, the cash ratio was 0.18, indicating that the company had $0.18 in cash and cash equivalents for every dollar of current liabilities. This ratio improved in Q1 2023 to 0.28, suggesting an increase in the company's liquidity position. However, this improvement was not sustained, as the cash ratio dropped to 0.19 in Q2 2023 and further to 0.23 in both Q3 and Q4 2023.
While the cash ratio of Caterpillar Inc. has shown some volatility, it generally remained above 0.1, indicating that the company has had sufficient short-term liquidity to meet its current obligations. However, compared to its performance in 2022, where the ratio hovered around 0.18, the recent decrease in the cash ratio may suggest a potential strain on the company's liquidity position in the most recent quarters. It would be important for investors and analysts to monitor this trend to assess the impact on Caterpillar Inc.'s financial health and ability to manage its short-term obligations.
Peer comparison
Dec 31, 2023