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.