Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Analysis of Liquidity Ratios 

Microsoft Excel

Liquidity Ratios (Summary)

Caterpillar Inc., liquidity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Current ratio 1.46 1.53 1.47 1.37 1.35
Quick ratio 0.89 1.02 0.98 0.90 0.91
Cash ratio 0.31 0.36 0.31 0.28 0.31

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Caterpillar Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Caterpillar Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Caterpillar Inc. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Current Ratio

Caterpillar Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 43,455  39,464  39,193  38,603  36,244 
Current liabilities 29,847  25,717  26,621  28,218  26,931 
Liquidity Ratio
Current ratio1 1.46 1.53 1.47 1.37 1.35
Benchmarks
Current Ratio, Competitors2
3M Co. 1.70 1.89 1.41 1.89 1.86
Boeing Co. 1.33 1.39 1.05 1.08 1.16
General Electric Co. 1.28 1.58 1.16 1.08 1.16
Honeywell International Inc. 1.30 1.47 1.34 1.29 1.38
Lockheed Martin Corp. 1.42 1.39 1.22 1.12 1.38
Raytheon Technologies Corp. 1.19 1.21 1.08 1.13 1.35
Current Ratio, Sector
Capital Goods 1.33 1.44 1.17 1.16 1.26
Current Ratio, Industry
Industrials 1.30 1.39 1.13 1.12 1.22

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 43,455 ÷ 29,847 = 1.46

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Caterpillar Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Quick Ratio

Caterpillar Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 9,254  9,352  8,284  7,857  8,261 
Receivables, trade and other 8,477  7,317  8,568  8,802  7,436 
Receivables, finance 8,898  9,463  9,336  8,650  8,757 
Total quick assets 26,629  26,132  26,188  25,309  24,454 
 
Current liabilities 29,847  25,717  26,621  28,218  26,931 
Liquidity Ratio
Quick ratio1 0.89 1.02 0.98 0.90 0.91
Benchmarks
Quick Ratio, Competitors2
3M Co. 1.04 1.23 0.79 1.14 1.18
Boeing Co. 0.34 0.41 0.23 0.28 0.37
General Electric Co. 0.93 1.27 0.86 0.79 0.84
Honeywell International Inc. 0.94 1.15 0.99 0.97 1.04
Lockheed Martin Corp. 1.15 1.05 0.93 0.88 0.91
Raytheon Technologies Corp. 0.81 0.78 0.73 0.76 0.88
Quick Ratio, Sector
Capital Goods 0.73 0.84 0.64 0.66 0.77
Quick Ratio, Industry
Industrials 0.80 0.86 0.66 0.68 0.78

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 26,629 ÷ 29,847 = 0.89

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Caterpillar Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Cash Ratio

Caterpillar Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 9,254  9,352  8,284  7,857  8,261 
Total cash assets 9,254  9,352  8,284  7,857  8,261 
 
Current liabilities 29,847  25,717  26,621  28,218  26,931 
Liquidity Ratio
Cash ratio1 0.31 0.36 0.31 0.28 0.31
Benchmarks
Cash Ratio, Competitors2
3M Co. 0.53 0.63 0.27 0.45 0.54
Boeing Co. 0.20 0.29 0.10 0.10 0.18
General Electric Co. 0.54 0.78 0.60 0.50 0.54
Honeywell International Inc. 0.59 0.79 0.58 0.58 0.57
Lockheed Martin Corp. 0.26 0.23 0.11 0.05 0.23
Raytheon Technologies Corp. 0.22 0.25 0.21 0.20 0.37
Cash Ratio, Sector
Capital Goods 0.34 0.45 0.31 0.29 0.39
Cash Ratio, Industry
Industrials 0.39 0.45 0.31 0.29 0.38

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,254 ÷ 29,847 = 0.31

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Caterpillar Inc. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.