Terex Corporation (TEX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 388,000 | 371,000 | 304,100 | 266,900 | 665,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 643,000 | 548,000 | 547,500 | 507,700 | 381,200 |
| Total current liabilities | US$ in thousands | 1,073,000 | 1,119,000 | 998,600 | 909,900 | 723,300 |
| Quick ratio | 0.96 | 0.82 | 0.85 | 0.85 | 1.45 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($388,000K
+ $—K
+ $643,000K)
÷ $1,073,000K
= 0.96
The quick ratio of Terex Corporation has shown fluctuations over the past five years. Starting at 1.45 on December 31, 2020, the ratio decreased to 0.85 by the end of both 2021 and 2022. This indicates a lower ability to meet short-term obligations with quick assets. Further, by December 31, 2023, the quick ratio declined slightly to 0.82. However, there was a notable improvement by the end of 2024, with the ratio rising to 0.96, showing a potential increase in the company's ability to cover its short-term liabilities with its most liquid assets. Overall, the trend in the quick ratio of Terex Corporation suggests a mixed performance in liquidity management over the period analyzed.