PACCAR Inc (PCAR)

Cash ratio

Dec 31, 2024 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
Cash and cash equivalents US$ in thousands 6,871,100 6,849,200 5,871,500 6,194,500 7,181,700 5,906,300 5,145,900 4,410,100 4,690,900 3,323,500 3,231,300 3,314,900 3,428,300 2,227,800 3,069,800 3,320,000 3,539,600 3,344,300 3,128,000 3,323,100
Short-term investments US$ in thousands 2,778,800 2,510,700 2,145,500 1,831,400 1,477,600 1,743,100 1,690,500 1,638,900 1,614,200 1,544,200 1,559,200 1,515,200 1,559,400 1,549,400 1,434,600 1,421,100 1,429,000 1,194,300 1,147,200 1,097,000
Total current liabilities US$ in thousands 29,400 11,894,000 6,380,100 7,642,500 23,800 7,371,300 7,484,200 7,514,200 18,000 5,971,800 8,776,200 6,325,900 19,600 5,583,700 5,881,400 5,823,400 25,500 5,271,300 4,969,500 5,156,500
Cash ratio 328.23 0.79 1.26 1.05 363.84 1.04 0.91 0.81 350.28 0.82 0.55 0.76 254.47 0.68 0.77 0.81 194.85 0.86 0.86 0.86

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,871,100K + $2,778,800K) ÷ $29,400K
= 328.23

The cash ratio of PACCAR Inc, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, has shown fluctuation over the given period.

The cash ratio was relatively stable around 0.86 from March to September 2020, indicating the company had enough cash on hand to cover its current liabilities. However, there was a significant spike to 194.85 by the end of December 2020, which could be an outlier or a reporting error.

Subsequently, the cash ratio decreased steadily from 0.81 in March 2021 to 0.55 in June 2022, suggesting that the company's ability to meet short-term obligations with cash was weakening. However, there was a notable increase to 350.28 by December 2022, indicating a significant improvement in liquidity position.

From March 2023 to June 2024, the cash ratio gradually increased from 0.81 to 1.26, indicating a strengthening ability to cover short-term liabilities with cash. The ratio was relatively stable around 0.79 towards the end of 2024.

Overall, the cash ratio of PACCAR Inc has shown fluctuations over the period, with some significant peaks and troughs. This emphasizes the importance of monitoring liquidity positions and managing cash effectively to ensure the company can meet its short-term obligations.