Caterpillar Inc (CAT)
Cash 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 and cash equivalents | US$ in thousands | 6,889,000 | 5,638,000 | 4,341,000 | 4,959,000 | 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 | 10,831,000 | 11,342,000 | 9,352,000 | 9,315,000 | 8,784,000 | 7,123,000 |
| Short-term investments | US$ in thousands | — | -3,826,000 | — | 400,000 | 1,900,000 | 2,550,000 | 500,000 | 250,000 | — | 2,021,000 | 659,000 | 813,000 | 964,000 | — | 10,831,000 | 11,342,000 | 9,352,000 | 9,315,000 | — | — |
| Total current liabilities | US$ in thousands | 32,272,000 | 32,218,000 | 33,564,000 | 32,371,000 | 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 |
| Cash ratio | 0.21 | 0.06 | 0.13 | 0.17 | 0.26 | 0.27 | 0.22 | 0.22 | 0.22 | 0.28 | 0.23 | 0.25 | 0.34 | 0.36 | 0.79 | 0.85 | 0.73 | 0.75 | 0.35 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,889,000K
+ $—K)
÷ $32,272,000K
= 0.21
The cash ratio of Caterpillar Inc has fluctuated over the past few years, ranging from a low of 0.06 as of September 30, 2024, to a high of 0.85 as of March 31, 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand to meet its obligations.
Based on the trend analysis, we can observe that the cash ratio generally increased from the end of 2020 to the first half of 2021, reaching its peak in March 2021. However, the ratio declined in the subsequent quarters of 2021 and continued to fluctuate in the following years, with occasional peaks and troughs.
The decreasing trend in the cash ratio from the highs of 2021 towards the end of 2024 may suggest that Caterpillar Inc's liquidity position became less robust during this period. It is important for investors and stakeholders to monitor the cash ratio closely, as a declining trend could indicate potential liquidity challenges for the company in meeting its short-term obligations.
Peer comparison
Dec 31, 2024