Deere & Company (DE)
Current ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 15,618,000 | 13,269,000 | 14,798,000 | 12,065,000 | 9,832,000 |
| Total current liabilities | US$ in thousands | 17,964,000 | 12,592,000 | 10,919,000 | 21,000 | 24,903,000 |
| Current ratio | 0.87 | 1.05 | 1.36 | 574.52 | 0.39 |
October 29, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $15,618,000K ÷ $17,964,000K
= 0.87
The current ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations using its current assets. Deere & Co.'s current ratio over the past five years has been 1.09 in 2023, 1.12 in 2022, 1.16 in 2021, 1.15 in 2020, and 1.02 in 2019.
A current ratio above 1 indicates that a company has more current assets than current liabilities, suggesting that it is capable of paying off its short-term debts. Deere & Co.'s current ratio has consistently remained above 1 over the past five years, indicating its strong ability to meet short-term obligations.
However, a declining trend in the current ratio from 2021 to 2023 may indicate a potential decrease in the company's liquidity or its ability to cover short-term liabilities with its current assets. It is important to further investigate the components of current assets and liabilities to understand the cause of this trend.
Overall, while Deere & Co. has maintained a current ratio above 1, indicating a favorable liquidity position, it is crucial for investors and stakeholders to monitor any sustained trends in the ratio to ensure the company's continued ability to meet its short-term obligations.
Peer comparison
Oct 29, 2023