CNH Industrial N.V. (CNH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 32,020,000 | 35,352,000 | 29,670,000 | 25,629,000 | 34,614,000 |
| Total current liabilities | US$ in thousands | 14,800,000 | 17,458,000 | 15,406,000 | 5,808,000 | 20,039,000 |
| Current ratio | 2.16 | 2.02 | 1.93 | 4.41 | 1.73 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $32,020,000K ÷ $14,800,000K
= 2.16
The current ratio of CNH Industrial N.V. has shown fluctuations over the past five years. In December 31, 2020, the current ratio was 1.73, indicating that the company had $1.73 in current assets for every $1 of current liabilities.
The ratio significantly improved by December 31, 2021, reaching 4.41, which suggests a strong liquidity position as the company had $4.41 in current assets to cover each $1 of current liabilities. This substantial increase may result from increased cash reserves or a reduction in short-term liabilities.
However, by December 31, 2022, the current ratio decreased to 1.93, although it remained above the industry average. In 2023 and 2024, the ratio continued to increase to 2.02 and 2.16, respectively, signaling an improvement in the company's ability to meet its short-term obligations.
Overall, the trend in the current ratio of CNH Industrial N.V. indicates that the company has maintained a healthy liquidity position over the years, with fluctuations reflecting changes in its financial structure and management of current assets and liabilities.
Peer comparison
Dec 31, 2024