PACCAR Inc (PCAR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 7,060,800 7,181,700 6,158,900 3,428,300 3,539,600
Short-term investments US$ in thousands 2,589,100 1,822,600 1,614,200 1,559,400 1,429,000
Total current liabilities US$ in thousands 29,400 23,800 18,000 19,600 25,500
Cash ratio 328.23 378.33 431.84 254.47 194.85

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,060,800K + $2,589,100K) ÷ $29,400K
= 328.23

The cash ratio of PACCAR Inc has exhibited a consistent upward trend over the years, increasing from 194.85% as of December 31, 2020, to 328.23% as of December 31, 2024. This indicates the company's ability to cover its short-term liabilities solely with its cash and cash equivalents has improved significantly. The cash ratio exceeding 100% in all years implies that PACCAR Inc holds more than enough cash to meet its immediate obligations, providing a strong indication of liquidity and financial stability. Additionally, the substantial increase in the cash ratio over the years suggests an efficient management of cash resources, which may contribute to the company's overall financial health and resilience.