Caterpillar Inc (CAT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 45,682,000 | 46,949,000 | 43,785,000 | 43,455,000 | 39,464,000 |
| Total current liabilities | US$ in thousands | 32,272,000 | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 |
| Current ratio | 1.42 | 1.35 | 1.39 | 1.46 | 1.53 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $45,682,000K ÷ $32,272,000K
= 1.42
The current ratio for Caterpillar Inc has shown a decreasing trend over the past five years, starting at 1.53 in December 31, 2020 and declining to 1.42 by December 31, 2024. This indicates a potential weakening liquidity position as the ratio has consistently decreased over the period. A current ratio below 2 may indicate potential challenges in meeting short-term obligations with current assets alone. Management should closely monitor this trend and take appropriate actions to ensure adequate liquidity levels for operational needs and financial obligations.
Peer comparison
Dec 31, 2024