Caterpillar Inc (CAT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,889,000 | 6,978,000 | 7,004,000 | 9,254,000 | 9,352,000 |
| Short-term investments | US$ in thousands | — | 1,900,000 | — | 964,000 | 9,352,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 32,272,000 | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 |
| Quick ratio | 0.21 | 0.26 | 0.22 | 0.34 | 0.73 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,889,000K
+ $—K
+ $—K)
÷ $32,272,000K
= 0.21
The quick ratio of Caterpillar Inc has been on a declining trend over the past five years. In December 2020, the quick ratio stood at 0.73, indicating that the company had $0.73 in liquid assets to cover each $1 of current liabilities. However, by December 2024, the quick ratio had decreased to 0.21, suggesting a significant deterioration in the company's ability to meet its short-term obligations with liquid assets. This downward trend may raise concerns about Caterpillar's liquidity position and its ability to handle unexpected financial challenges in the near future. Further analysis and monitoring of the company's cash flow management and working capital practices may be warranted to address this declining quick ratio.
Peer comparison
Dec 31, 2024