CNH Industrial N.V. (CNH)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 32,020,000 | 32,928,000 | 32,942,000 | 34,653,000 | 35,352,000 | 32,800,000 | 32,328,000 | 30,376,000 | 29,670,000 | 26,501,000 | 26,062,000 | 26,087,000 | 33,102,000 | 15,875,000 | 16,519,000 | 15,204,000 | 16,043,000 | 14,403,000 | 14,494,000 | 12,139,000 |
| Total current liabilities | US$ in thousands | 14,800,000 | 4,174,000 | 7,330,000 | 5,504,000 | 17,494,000 | 5,795,000 | 6,136,000 | 5,885,000 | 15,406,000 | 4,846,000 | 5,258,000 | 5,533,000 | 19,611,000 | 390,000 | 407,000 | 388,000 | 389,000 | 362,000 | 349,000 | 301,000 |
| Current ratio | 2.16 | 7.89 | 4.49 | 6.30 | 2.02 | 5.66 | 5.27 | 5.16 | 1.93 | 5.47 | 4.96 | 4.71 | 1.69 | 40.71 | 40.59 | 39.19 | 41.24 | 39.79 | 41.53 | 40.33 |
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 years based on the provided data. From March 31, 2020, to December 31, 2021, the current ratio remained significantly high, ranging from 39.19 to 41.24, indicating a strong liquidity position and the ability to cover short-term obligations comfortably.
However, there was a notable decline in the current ratio by the end of December 31, 2021, dropping to 1.69. This sharp decrease may raise concerns regarding the company's ability to meet its short-term liabilities with its current assets.
Subsequently, there was a substantial improvement in the current ratio in the following periods, reaching levels around 5.27 by June 30, 2023, and further increasing to 7.89 by September 30, 2024. These higher ratios suggest a healthier liquidity position and a better capability to cover short-term obligations.
Overall, the data indicates significant fluctuations in CNH Industrial N.V.'s current ratio over the years, with periods of both strength and weakness in its liquidity position. This demonstrates the importance of ongoing monitoring and management of the company's working capital to ensure financial stability.
Peer comparison
Dec 31, 2024