Caterpillar Inc (CAT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 18,820,000 | 17,869,000 | 17,375,000 | 16,780,000 | 7,648,000 |
| Total current liabilities | US$ in thousands | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 | 26,621,000 |
| Quick ratio | 0.80 | 0.79 | 0.92 | 1.38 | 0.60 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,978,000K
+ $1,900,000K
+ $18,820,000K)
÷ $34,728,000K
= 0.80
The quick ratio of Caterpillar Inc. has fluctuated over the past five years, ranging from 0.37 to 0.43. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on selling inventory. From 2019 to 2021, Caterpillar's quick ratio improved from 0.40 to 0.43, showing a strengthened ability to cover its current liabilities with liquid assets. However, by the end of 2023, the quick ratio decreased to 0.41, suggesting a slight deterioration in short-term liquidity compared to the previous year.
Overall, despite the fluctuations in the quick ratio, Caterpillar Inc. has maintained a level of liquidity that allows it to meet its short-term obligations, but management may need to monitor the trend to ensure continued financial stability.
Peer comparison
Dec 31, 2023