CNH Industrial N.V. (CNH)

Liquidity ratios

	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	Dec 31, 2019
Current ratio	399.05	409.43	441.22	441.25	533.26	646.00	2,497.00	621.25	764.67	823.36	948.80	40.43	40.71	40.59	39.19	41.24	39.79	41.53	40.33	40.30
Quick ratio	85.76	99.81	143.83	183.83	161.95	206.00	823.00	280.06	275.00	259.55	321.90	14.44	19.03	20.35	19.11	23.59	19.20	19.71	12.79	15.28
Cash ratio	85.76	99.81	143.83	183.83	161.95	206.00	823.00	280.06	275.00	259.55	321.90	14.44	19.03	20.35	19.11	23.59	19.20	19.71	12.79	15.28

Looking at the liquidity ratios of CNH Industrial N.V. over the past few quarters, we can see fluctuations in its ability to meet its short-term obligations.

The current ratio, which measures the company's ability to pay its short-term liabilities with its current assets, has been declining over the quarters but remains at a very high level, reaching over 399 in the most recent quarter. This indicates that CNH Industrial N.V. has a high level of current assets relative to its current liabilities, providing a strong buffer for short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Despite fluctuating values, the quick ratio has generally been decreasing, which may suggest that CNH Industrial N.V. may have more difficulty meeting its short-term obligations when inventory is excluded from the calculation.

The cash ratio, which is the most conservative measure of liquidity, has also been volatile but generally high over the quarters. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents alone.

Overall, CNH Industrial N.V. appears to have strong liquidity positions based on these ratios, with ample current assets to cover short-term obligations. However, the downward trend in the quick ratio may raise some concerns about the company's ability to meet its short-term liabilities without relying on inventory. It would be advisable for stakeholders to keep an eye on these ratios to assess the company's ongoing liquidity position.

Additional liquidity measure

		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	Dec 31, 2019
Cash conversion cycle	days	146.92	138.70	137.56	120.20	137.52	135.98	127.54	104.54	123.37	131.77	136.62	109.07	430.99	331.10	260.66	197.10	118.31	121.88	127.53	118.40

The cash conversion cycle for CNH Industrial N.V. has shown some variability over the past periods. The cycle represents the time it takes for the company to convert its investments in raw materials into cash receipts from sales.

In the most recent period, as of September 30, 2024, the company's cash conversion cycle stood at 146.92 days, which indicates an increase from the previous quarter. This suggests a longer period between the company's spending on inventory and the collection of cash from sales.

The trend over the past few quarters has shown fluctuations, with periods of both increase and decrease in the cash conversion cycle. However, there seems to be some volatility in the company's operating cycle efficiency.

It is important for CNH Industrial N.V. to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in utilizing its working capital. Additionally, identifying factors contributing to the variations in the cycle can help the company improve its cash flow management and overall financial performance.