Terex Corporation (TEX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,245,200 | 1,962,000 | 1,767,800 | 1,878,600 | 2,019,700 |
| Total current liabilities | US$ in thousands | 1,119,200 | 998,600 | 909,900 | 723,300 | 872,400 |
| Current ratio | 2.01 | 1.96 | 1.94 | 2.60 | 2.32 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,245,200K ÷ $1,119,200K
= 2.01
The current ratio of Terex Corp. has shown a fluctuating trend over the past five years. In 2023, the current ratio increased to 2.01 from 1.96 in the previous year. This signifies that the company's ability to meet its short-term obligations with its current assets slightly improved.
Comparing the recent ratios to historical data, it is evident that the current ratio has been relatively stable around the 2.0 mark in the past five years, indicating that Terex Corp. has been maintaining a healthy liquidity position.
Although the current ratio decreased from 2.60 in 2020 to 2.32 in 2019, the subsequent improvements suggest that the company has efficiently managed its current assets and liabilities in recent years. Overall, a current ratio above 1.0 indicates that Terex Corp. has sufficient current assets to cover its current liabilities, providing a positive indication of financial health in terms of short-term liquidity.