CNH Industrial N.V. (CNH)
Quick ratio
| 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 | US$ in thousands | 1,801,000 | 2,002,000 | 3,236,000 | 4,322,000 | 2,979,000 | 3,194,000 | 3,213,000 | 4,376,000 | 3,154,000 | 2,855,000 | 3,219,000 | 5,044,000 | 7,149,000 | 7,820,000 | 7,059,000 | 8,785,000 | 6,425,000 | 5,145,000 | 3,850,000 | 4,875,000 |
| Short-term investments | US$ in thousands | — | 94,000 | 72,000 | 90,000 | 98,000 | 102,000 | 79,000 | 105,000 | 146,000 | — | — | 254,000 | 274,000 | 464,000 | 357,000 | 392,000 | 526,000 | 1,733,000 | — | 0 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 21,000 | 21,000 | 23,000 | 24,000 | 19,000 | 16,000 | 4,000 | 16,000 | 12,000 | 11,000 | 10,000 | 367,000 | 390,000 | 407,000 | 388,000 | 389,000 | 362,000 | 349,000 | 301,000 | 319,000 |
| 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 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,801,000K
+ $—K
+ $—K)
÷ $21,000K
= 85.76
The quick ratio measures a company's ability to pay off its current liabilities with its most liquid assets. A quick ratio above 1 indicates that a company can cover its short-term obligations without relying heavily on inventory sales.
Analyzing the quick ratio of CNH Industrial N.V. over the past few quarters, we see fluctuations in the ratio. As of September 30, 2024, the quick ratio stands at 85.76, indicating that the company may face challenges in meeting its short-term obligations from its quick assets alone.
Looking back at the trend, the quick ratio has generally been above 1 in recent quarters, peaking at 823.00 on March 31, 2023, which may suggest a very high level of liquidity. However, such extreme spikes in the quick ratio may be attributed to specific circumstances, such as a significant increase in liquid assets or a decrease in current liabilities.
Investors and stakeholders should closely monitor CNH Industrial N.V.'s quick ratio over time to understand changes in the company's liquidity position and assess its ability to manage short-term financial obligations.
Peer comparison
Sep 30, 2024