CNH Industrial N.V. (CNH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,191,000 | 4,322,000 | 5,129,000 | 5,845,000 | 9,629,000 |
| Short-term investments | US$ in thousands | — | 220,000 | 105,000 | 76,000 | 469,000 |
| Total current liabilities | US$ in thousands | 14,800,000 | 17,458,000 | 15,406,000 | 5,808,000 | 20,039,000 |
| Cash ratio | 0.22 | 0.26 | 0.34 | 1.02 | 0.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,191,000K
+ $—K)
÷ $14,800,000K
= 0.22
The cash ratio of CNH Industrial N.V. has shown fluctuations over the past five years.
As of December 31, 2020, the cash ratio stood at 0.50, indicating that the company had $0.50 in cash and cash equivalents for every $1 of current liabilities, showcasing a moderate level of liquidity.
By December 31, 2021, the cash ratio improved to 1.02, suggesting a stronger liquidity position as the company had more than enough cash to cover its short-term obligations.
However, in the subsequent years, the cash ratio decreased, reaching 0.34 by December 31, 2022, 0.26 by December 31, 2023, and further declining to 0.22 by December 31, 2024.
The declining trend in the cash ratio could indicate potential liquidity challenges for CNH Industrial N.V. in meeting its short-term obligations with its available cash and cash equivalents. It would be important for the company to closely monitor its liquidity position and take necessary actions to maintain a healthy cash reserve relative to its current liabilities.
Peer comparison
Dec 31, 2024