Deere & Company (DE)
Quick ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,137,000 | 7,458,000 | 6,576,000 | 5,267,000 | 3,976,000 | 4,774,000 | 4,359,000 | 3,878,000 | 4,472,000 | 8,017,000 | 7,519,000 | 7,182,000 | 6,962,000 | 7,066,000 | 8,190,000 | 8,900,000 | 3,602,000 | 3,857,000 | 3,383,000 | 3,484,000 |
| Short-term investments | US$ in thousands | 1,136,000 | 946,000 | 841,000 | 856,000 | 852,000 | 734,000 | 719,000 | 682,000 | 735,000 | 728,000 | 688,000 | 668,000 | 667,000 | 641,000 | 640,000 | 626,000 | 609,000 | 581,000 | 565,000 | 545,100 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 17,117,000 | 17,964,000 | 17,143,000 | 17,109,000 | 14,129,000 | 12,592,000 | 14,176,000 | 12,413,000 | 10,990,000 | 10,919,000 | 10,404,000 | 9,911,000 | 20,000 | 21,000 | 9,075,000 | 13,000 | 12,000 | 24,903,000 | 25,716,000 | 26,289,300 |
| Quick ratio | 0.37 | 0.47 | 0.43 | 0.36 | 0.34 | 0.44 | 0.36 | 0.37 | 0.47 | 0.80 | 0.79 | 0.79 | 381.45 | 367.00 | 0.97 | 732.77 | 350.92 | 0.18 | 0.15 | 0.15 |
January 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,137,000K
+ $1,136,000K
+ $—K)
÷ $17,117,000K
= 0.37
The quick ratio of Deere & Co. has shown some fluctuations over the past eight quarters, ranging from 0.21 to 0.29. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A higher quick ratio is generally considered favorable as it indicates a stronger ability to cover immediate liabilities.
In the most recent quarter, Q1 2024, the quick ratio was 0.23, which means that for every dollar of current liabilities, the company had $0.23 of quick assets available to cover them. This ratio has slightly decreased from the previous quarter (Q4 2023) when it was 0.24.
Looking at the trend over the past year, the quick ratio has been relatively low, with the highest ratio of 0.29 observed in Q2 2023. These fluctuations suggest that Deere & Co. may be facing challenges in efficiently converting its current assets into cash to meet short-term obligations.
It would be important for stakeholders to monitor the company's quick ratio closely to ensure that Deere & Co. maintains a sufficient level of liquidity to meet its short-term financial commitments. Additionally, management may need to focus on strategies to improve the efficiency of their current asset management in order to strengthen their liquidity position.
Peer comparison
Jan 28, 2024