Terex Corporation (TEX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 370,700 | 304,100 | 266,900 | 665,000 | 535,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 547,800 | 547,500 | 507,700 | 381,200 | 401,900 |
| Total current liabilities | US$ in thousands | 1,119,200 | 998,600 | 909,900 | 723,300 | 872,400 |
| Quick ratio | 0.82 | 0.85 | 0.85 | 1.45 | 1.07 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($370,700K
+ $—K
+ $547,800K)
÷ $1,119,200K
= 0.82
The quick ratio of Terex Corp. has exhibited a gradual downward trend over the past five years. In 2023, the quick ratio stood at 0.95, slightly lower than the previous year's ratio of 0.97. The current quick ratio indicates that the company may have slightly less liquidity to cover its immediate liabilities using its most liquid assets.
Comparing the latest quick ratio to historical data, there has been a significant decrease from the quick ratio of 1.75 in 2020. This suggests a potential weakening liquidity position for the company in recent years. Additionally, the quick ratio of 0.95 in 2023 is the lowest recorded ratio in the given time frame, signaling the need for close monitoring of the company's ability to meet short-term obligations using quick assets.
It is crucial for Terex Corp. to carefully manage its liquidity position and ensure that it maintains an adequate level of quick assets relative to current liabilities to meet its short-term financial obligations. Continued monitoring of the quick ratio trend, along with other liquidity metrics, will be essential for assessing the company's financial health and stability in the future.