Terex Corporation (TEX)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,320,000 | 2,381,000 | 2,401,600 | 2,389,600 | 2,245,000 | 2,244,500 | 2,217,800 | 2,090,400 | 1,962,000 | 1,867,000 | 1,909,200 | 1,835,100 | 1,767,800 | 2,005,800 | 1,996,700 | 1,901,900 | 1,878,600 | 1,761,100 | 1,707,100 | 1,965,600 |
| Total current liabilities | US$ in thousands | 1,073,000 | 996,000 | 1,087,900 | 1,105,200 | 1,119,000 | 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 |
| Current ratio | 2.16 | 2.39 | 2.21 | 2.16 | 2.01 | 2.11 | 2.07 | 1.99 | 1.96 | 1.96 | 2.00 | 2.00 | 1.94 | 2.13 | 2.11 | 2.27 | 2.60 | 2.59 | 2.53 | 2.53 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,320,000K ÷ $1,073,000K
= 2.16
Terex Corporation's current ratio has shown some fluctuations over the reporting periods provided. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. In general, a current ratio above 1 indicates that the company has more current assets than current liabilities.
From March 31, 2020, to September 30, 2021, the current ratio of Terex Corporation remained relatively stable, ranging between 2.53 and 2.59, indicating a healthy liquidity position. However, from March 31, 2022, to December 31, 2023, there was a slight decline in the current ratio to around 1.94 to 2.00, suggesting a potential decrease in liquidity.
During the second half of 2023 and the first half of 2024, the current ratio improved, reaching a range of 2.16 to 2.39 by September 30, 2024. This increase indicates an enhanced ability to cover short-term obligations with current assets, reflecting positively on the company's liquidity position.
Overall, despite some fluctuations, Terex Corporation maintained a current ratio above 1 throughout the reporting periods, signaling that it generally had sufficient current assets to meet its short-term liabilities. It is essential for the company to monitor and manage its current assets and liabilities effectively to ensure continued liquidity and financial stability.