CNH Industrial N.V. (CNH)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 3,191,000 4,322,000 5,129,000 5,845,000 9,629,000
Short-term investments US$ in thousands 220,000 105,000 76,000 469,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 14,800,000 17,458,000 15,406,000 5,808,000 20,039,000
Quick ratio 0.22 0.26 0.34 1.02 0.50

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,191,000K + $—K + $—K) ÷ $14,800,000K
= 0.22

The quick ratio of CNH Industrial N.V. has shown fluctuations over the years based on the provided data. As of December 31, 2020, the quick ratio was 0.50, indicating that the company had $0.50 of liquid assets available to cover each dollar of its current liabilities.

By December 31, 2021, the quick ratio improved to 1.02, reflecting a healthier liquidity position with $1.02 in quick assets for every dollar of current liabilities. This suggests that the company had sufficient liquid assets to meet its short-term obligations.

However, there was a significant decline in the quick ratio by December 31, 2022, where it dropped to 0.34. This could indicate potential liquidity challenges as the company had fewer liquid assets available to cover its current liabilities.

The downward trend continued into December 31, 2023, with the quick ratio falling to 0.26, further highlighting liquidity concerns and the need for close monitoring of the company's ability to meet short-term obligations.

By the end of December 31, 2024, the quick ratio decreased even further to 0.22, signaling a continued strain on liquidity and the importance of implementing strategies to improve the company's short-term financial position.


Peer comparison

Dec 31, 2024

Company name
Symbol
Quick ratio
CNH Industrial N.V.
CNH
0.22
Astec Industries Inc
ASTE
0.33
Caterpillar Inc
CAT
0.21