Terex Corporation (TEX)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 388,000 371,000 304,100 266,900 665,000
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 1,073,000 1,119,000 998,600 909,900 723,300
Cash ratio 0.36 0.33 0.30 0.29 0.92

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($388,000K + $—K) ÷ $1,073,000K
= 0.36

The cash ratio of Terex Corporation has exhibited a downward trend over the past five years. Starting at 0.92 on December 31, 2020, the ratio has decreased to 0.29 by December 31, 2021, and has since stabilized around 0.30 to 0.36 from 2022 to 2024.

This declining trend may indicate that Terex Corporation's ability to cover its short-term liabilities solely with its cash and cash equivalents has weakened over the years. It is essential for the company to closely monitor its cash position and liquidity management to ensure it can meet its financial obligations in a timely manner. Further analysis of the company's operating cash flows and working capital management may provide insights into the factors influencing this trend.