CNH Industrial N.V. (CNH)

Liquidity ratios

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
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
Quick ratio 0.22 0.43 0.23 0.73 0.29 0.65 0.66 0.69 0.34 0.82 0.68 0.73 0.35 19.03 20.35 19.11 23.59 19.20 19.71 12.79
Cash ratio 0.22 0.43 0.23 0.73 0.29 0.65 0.66 0.69 0.34 0.82 0.68 0.73 0.35 19.03 20.35 19.11 23.59 19.20 19.71 12.79

The current ratio of CNH Industrial N.V. has shown significant fluctuations over the years, ranging from a high of 41.53 in June 2020 to a low of 1.69 in December 2021. This indicates that in general, the company has had a strong ability to meet its short-term obligations with its current assets, although there was a sudden decline and subsequent recovery in the ratio during 2021 and 2022. The ratio improved notably in the following years, indicating a healthier liquidity position.

The quick ratio, which excludes inventory from current assets, also experienced fluctuations but generally remained above 1, reflecting a strong ability to meet short-term obligations without relying on inventory. However, there were periods, such as in December 2021, where the quick ratio fell significantly, indicating potential liquidity challenges during that time. Subsequently, the quick ratio improved, indicating better liquidity management by the company.

The cash ratio, which is the most conservative measure of liquidity, was relatively stable over the years, hovering around or below 1. This suggests that CNH Industrial N.V. has maintained a healthy level of cash or cash equivalents to cover its short-term liabilities, although there were slight fluctuations indicating changes in the cash position.

Overall, while the company experienced fluctuations in its liquidity ratios, the general trend indicates that CNH Industrial N.V. has managed its liquidity well and has maintained a strong ability to meet its short-term obligations, especially in the later years of the analyzed period.

Additional liquidity measure

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
Cash conversion cycle days 130.76 147.24 138.86 137.64 120.44 138.36 137.53 129.15 105.82 104.01 109.83 112.85 153.41 430.99 331.10 260.66 197.10 118.31 121.88 127.53

The cash conversion cycle of CNH Industrial N.V. has fluctuated over the periods analyzed. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2021, the company's cash conversion cycle varied significantly, ranging from a low of 112.85 days to a high of 430.99 days. This indicates fluctuations in the efficiency of CNH Industrial's operations in managing its cash flow during this period.

Since December 31, 2021, the cash conversion cycle seems to have stabilized around 100 to 150 days, suggesting improved management of working capital and a more consistent cash flow process. This stability may indicate enhanced operational efficiency and better inventory management practices at CNH Industrial.

It is important for CNH Industrial N.V. to continue monitoring its cash conversion cycle to ensure optimal management of its working capital, efficiency in operations, and sustainable cash flow performance in the future.