Terex Corporation (TEX)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 370,700 | 352,300 | 297,700 | 254,200 | 304,100 | 231,700 | 253,300 | 218,400 | 266,900 | 553,200 | 542,200 | 572,900 | 665,000 | 508,300 | 426,000 | 511,300 | 535,100 | 470,600 | 367,500 | 304,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | -8,200 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,119,200 | 1,062,100 | 1,073,600 | 1,050,500 | 998,600 | 952,700 | 955,000 | 919,500 | 909,900 | 939,800 | 945,000 | 838,000 | 723,300 | 681,000 | 675,600 | 775,600 | 872,400 | 922,300 | 1,102,000 | 1,103,200 |
| Cash ratio | 0.33 | 0.33 | 0.28 | 0.24 | 0.30 | 0.24 | 0.26 | 0.24 | 0.29 | 0.59 | 0.57 | 0.68 | 0.92 | 0.75 | 0.63 | 0.66 | 0.61 | 0.51 | 0.33 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($370,700K
+ $—K)
÷ $1,119,200K
= 0.33
The cash ratio of Terex Corp. has shown fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term obligations with cash and cash equivalents.
In Q4 2023, the cash ratio was 0.46, which indicates that for every dollar of current liabilities, Terex Corp. had $0.46 in cash and cash equivalents. This was an improvement compared to the previous quarter (Q3 2023) where the ratio was 0.45.
Looking further back, the cash ratio reached a low point of 0.36 in Q1 2023 before gradually increasing in the following quarters. The ratio was the highest in Q2 2022 at 0.41.
Overall, the varying cash ratio of Terex Corp. suggests fluctuations in its ability to meet short-term obligations with readily available cash. It is important for the company to maintain a healthy cash ratio to ensure liquidity and financial stability.