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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Caterpillar's current ratio for the quarter that ended in Mar. 2024 was 1.35.
Caterpillar has a current ratio of 1.35. It generally indicates good short-term financial strength.
The historical rank and industry rank for Caterpillar's Current Ratio or its related term are showing as below:
During the past 13 years, Caterpillar's highest Current Ratio was 1.61. The lowest was 1.22. And the median was 1.42.
The historical data trend for Caterpillar's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Caterpillar Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Current Ratio | Get a 7-Day Free Trial | 1.47 | 1.53 | 1.46 | 1.39 | 1.35 |
Caterpillar Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Current Ratio | Get a 7-Day Free Trial | 1.43 | 1.33 | 1.45 | 1.35 | 1.35 |
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Current Ratio distribution charts can be found below:
* The bar in red indicates where Caterpillar's Current Ratio falls into.
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Caterpillar's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Current Ratio (A: Dec. 2023 ) | = | Total Current Assets (A: Dec. 2023 ) | / | Total Current Liabilities (A: Dec. 2023 ) |
= | 46949 | / | 34728 | |
= | 1.35 |
Caterpillar's Current Ratio for the quarter that ended in Mar. 2024 is calculated as
Current Ratio (Q: Mar. 2024 ) | = | Total Current Assets (Q: Mar. 2024 ) | / | Total Current Liabilities (Q: Mar. 2024 ) |
= | 43664 | / | 32371 | |
= | 1.35 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Caterpillar (NYSE:CAT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Thank you for viewing the detailed overview of Caterpillar's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Anthony D. Fassino | officer: Group President | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015 |
Cheryl H Johnson | officer: Chief Human Resources Officer | 40 WESTMINSTER STREET, PROVIDENCE RI 02903 |
Joseph E Creed | officer: Interim CFO | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015 |
Denise C Johnson | officer: Group President | C/O CATERPILLAR, INCORPORATED, 901 WEST WASHINGTON, CV41110, EAST PEORIA IL 61630 |
Lange Bob De | officer: Group President | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015 |
Fish James C Jr | director | 800 CAPITOL STREET 3000, HOUSTON TX 77002 |
Judith Fran Marks | director | C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484 |
David Maclennan | director | 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347 |
Suzette M Long | officer: Int. Executive Vice President | 510 LAKE COOK ROAD, SUITE 100, DEERFILED IL 60015 |
Daniel M Dickinson | director | THAYER CAPITAL PARTNERS, 1455 PENNSYLVANIA AVENUE NW, STE 350, WASHINGTON DC 20004 |
William E Schaupp | officer: Chief Accounting Officer | PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272 |
Gary Michael Marvel | officer: Chief Accounting Officer | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015 |
Gerald Johnson | director | 300 RENAISSANCE CENTER, M/C: 482-C23-A68, DETROIT MI 48265 |
Ramin Younessi | officer: Group President | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015 |
William P Ainsworth | officer: Group President | 510 LAKE COOK ROAD, SUITE 100, DEERFIELD X1 60015 |
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