Terex Corporation (TEX)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 547,800 | 645,100 | 681,200 | 630,100 | 547,500 | 531,100 | 558,900 | 525,600 | 507,700 | 513,400 | 546,500 | 488,300 | 381,200 | 403,200 | 351,300 | 402,000 | 401,900 | 491,700 | 643,800 | 661,600 |
| 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 |
| Quick ratio | 0.82 | 0.94 | 0.91 | 0.84 | 0.85 | 0.80 | 0.84 | 0.81 | 0.85 | 1.13 | 1.15 | 1.27 | 1.45 | 1.34 | 1.15 | 1.18 | 1.07 | 1.04 | 0.92 | 0.88 |
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. fluctuated over the past eight quarters, ranging from a low of 0.93 to a high of 1.06. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities without selling inventory or other current assets.
In Q3 2023 and Q2 2023, Terex Corp. had quick ratios of 1.06 and 1.02, respectively, indicating a strong ability to cover its short-term liabilities with its liquid assets during those periods. In contrast, during Q1 2023 and Q4 2022, the quick ratio dropped to 0.96 and 0.97, respectively, suggesting a lower ability to meet short-term obligations without relying on selling inventory or other assets.
Overall, the trend in the quick ratio appears somewhat inconsistent, with fluctuations observed over the quarters. Further analysis of the company's liquidity position and management of current assets would provide a more comprehensive understanding of its financial health.