Caterpillar Inc (CAT)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 18,820,000 | 18,742,000 | 18,704,000 | 18,349,000 | 17,869,000 | 17,076,000 | 17,315,000 | 18,138,000 | 17,375,000 | 16,566,000 | 17,363,000 | 17,288,000 | 16,780,000 | 15,935,000 | 6,191,000 | 7,645,000 | 7,648,000 | 7,156,000 | 7,870,000 | 7,918,000 |
| 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 |
| Quick ratio | 0.80 | 0.84 | 0.75 | 0.80 | 0.79 | 0.84 | 0.83 | 0.84 | 0.89 | 1.00 | 1.42 | 1.50 | 1.38 | 1.38 | 0.59 | 0.56 | 0.60 | 0.55 | 0.55 | 0.55 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio greater than 1 indicates that a company is able to cover its current liabilities with its quick assets.
Caterpillar Inc.'s quick ratio has shown variations over the past eight quarters, ranging from 0.36 to 0.57. The quick ratio has been below 1 in all quarters, indicating that the company may have difficulty meeting its short-term obligations using only its most liquid assets.
While the quick ratio improved in Q1 2023 to 0.57, indicating a better ability to cover short-term liabilities, it declined in subsequent quarters. The quick ratio in Q4 2023 stood at 0.41, similar to the levels seen in Q3 2023 and Q2 2023.
The trend over the past quarters suggests that Caterpillar Inc. may have some challenges in using its quick assets to cover its short-term obligations consistently. It would be important for the company to monitor and potentially improve its liquidity position to enhance its ability to meet current obligations.
Peer comparison
Dec 31, 2023