CNH Industrial N.V. (CNH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,590,000 | 9,940,000 | 14,837,000 | 16,043,000 | 12,855,000 |
| Total current liabilities | US$ in thousands | 24,000 | 16,000 | 367,000 | 389,000 | 319,000 |
| Current ratio | 441.25 | 621.25 | 40.43 | 41.24 | 40.30 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,590,000K ÷ $24,000K
= 441.25
The current ratio of CNH Industrial N.V. has fluctuated significantly over the past five years. In 2023, the current ratio stood at 441.25, showing a substantial increase from the previous year's 621.25. This surge may indicate an excess of current assets relative to current liabilities.
Comparatively, the current ratio was significantly lower in 2021, 2020, and 2019, ranging from 40.30 to 41.24. These lower ratios suggest a tighter liquidity position, with current assets being closer to current liabilities during those years.
The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally considered favorable, indicating a stronger liquidity position. However, an excessively high current ratio could also suggest inefficient use of resources or an excessive buildup of inventory.
In conclusion, the fluctuation in CNH Industrial N.V.'s current ratio over the past five years indicates varying levels of liquidity and efficiency in managing short-term obligations. Further analysis of the components contributing to the current assets and liabilities would be needed to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023