PACCAR Inc (PCAR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,181,700 | 6,158,900 | 3,428,300 | 3,539,600 | 4,175,100 |
| Short-term investments | US$ in thousands | 1,477,600 | 1,614,200 | 1,559,400 | 1,429,000 | 1,162,100 |
| Total current liabilities | US$ in thousands | 23,800 | 18,000 | 19,600 | 25,500 | 39,900 |
| Cash ratio | 363.84 | 431.84 | 254.47 | 194.85 | 133.76 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,181,700K
+ $1,477,600K)
÷ $23,800K
= 363.84
The cash ratio of Paccar Inc. has shown a consistent trend of improvement over the past five years. The ratio has increased from 0.35 in 2019 to 0.42 in 2023. This indicates that the company has been able to enhance its ability to cover its short-term liabilities with cash and cash equivalents. The higher cash ratio suggests a stronger liquidity position, which can be beneficial for managing operational needs and financial obligations in the short term. Paccar Inc.'s increasing cash ratio trend demonstrates an efficient cash management strategy and a solid financial position to meet its short-term obligations.
Peer comparison
Dec 31, 2023