CNH Industrial N.V. (CNH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,322,000 | 4,376,000 | 5,044,000 | 8,785,000 | 4,875,000 |
| Short-term investments | US$ in thousands | 136,000 | 105,000 | 254,000 | 392,000 | 0 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 24,000 | 16,000 | 367,000 | 389,000 | 319,000 |
| Quick ratio | 185.75 | 280.06 | 14.44 | 23.59 | 15.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,322,000K
+ $136,000K
+ $—K)
÷ $24,000K
= 185.75
The quick ratio, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations with its most liquid assets.
Analyzing the quick ratio of CNH Industrial N.V. over the past five years, we observe significant fluctuations.
In Dec 31, 2023, the quick ratio was reported at 185.75, a substantial increase compared to the prior year. This high quick ratio indicates that CNH Industrial N.V. has a strong ability to cover its short-term liabilities with its quick assets.
In Dec 31, 2022, the quick ratio was even higher at 280.06, signaling that the company had a substantial buffer of quick assets to cover its short-term obligations.
However, in Dec 31, 2021, there was a significant decline in the quick ratio to 14.44. This sharp drop could raise concerns about the company's liquidity and ability to meet its short-term liabilities with its readily available assets.
The quick ratio improved in Dec 31, 2020 and Dec 31, 2019, standing at 23.59 and 15.28 respectively. Although these ratios were not as high as in the more recent years, they still portrayed an acceptable level of liquidity to cover short-term obligations.
Overall, the fluctuating trend in the quick ratio of CNH Industrial N.V. suggests varying degrees of liquidity and ability to meet short-term obligations over the years, with the most recent data indicating a significant improvement in liquidity position.
Peer comparison
Dec 31, 2023