Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Caterpillar Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity profile remains relatively stable over the analyzed period, characterized by a consistent ability to cover short-term obligations through total current assets, though a significant reliance on inventory is evident. While the current ratio remains comfortably above 1.0, the quick and cash ratios indicate a leaner immediate liquidity position, with periodic fluctuations in cash availability.
- Current Ratio Trends
- The current ratio fluctuates within a narrow band between 1.28 and 1.45. A gradual decline is observed from a peak of 1.45 in mid-2022 to a low of 1.28 in June 2024. Subsequent recovery occurred through 2025, peaking again at 1.44 in December 2025, before settling at 1.35 by March 2026. This consistency suggests a disciplined approach to maintaining a buffer of current assets over current liabilities.
- Quick Ratio Analysis
- The quick ratio exhibits greater volatility, ranging from 0.69 to 0.86. The persistent gap between the current ratio and the quick ratio indicates that a substantial portion of current assets is held in inventory, which cannot be immediately converted to cash. Low points of 0.69 were recorded in June 2024 and March 2025, while a period of improved liquidity peaked in December 2025 at 0.86.
- Cash Ratio Volatility
- The cash ratio demonstrates the most significant variance, with values ranging from 0.11 to 0.27. After maintaining a steady range near 0.20 through 2022 and 2023, the ratio experienced sharp contractions to 0.11 in March 2024 and March 2025. A temporary spike to 0.27 in December 2025 suggests a short-term accumulation of cash or cash equivalents, which was subsequently reversed by March 2026, returning to 0.11.
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Current Ratio
Caterpillar Inc., current ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 48,568) | 52,485) | 49,818) | 46,755) | 43,019) | 45,682) | 44,946) | 43,096) | 43,664) | 46,949) | 48,005) | 47,000) | 45,660) | 43,785) | 42,577) | 41,982) | 42,570) | ||||||
| Current liabilities | 35,902) | 36,558) | 35,991) | 34,934) | 32,595) | 32,272) | 32,218) | 33,564) | 32,371) | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 1.35 | 1.44 | 1.38 | 1.34 | 1.32 | 1.42 | 1.40 | 1.28 | 1.35 | 1.35 | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.18 | 1.19 | 1.18 | 1.23 | 1.23 | 1.32 | 1.12 | 1.18 | 1.14 | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | ||||||
| Eaton Corp. plc | 1.19 | 1.32 | 1.28 | 1.24 | 1.31 | 1.50 | 1.53 | 1.56 | 1.56 | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | ||||||
| GE Aerospace | 1.01 | 1.04 | 1.08 | 1.04 | 1.08 | 1.09 | 1.13 | 1.14 | 1.17 | 1.18 | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | ||||||
| Honeywell International Inc. | 1.39 | 1.30 | 1.36 | 1.29 | 1.25 | 1.31 | 1.44 | 1.21 | 1.66 | 1.27 | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | ||||||
| Lockheed Martin Corp. | 1.14 | 1.09 | 1.13 | 0.98 | 1.08 | 1.13 | 1.30 | 1.24 | 1.30 | 1.21 | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | ||||||
| RTX Corp. | 1.02 | 1.03 | 1.07 | 1.01 | 1.01 | 0.99 | 0.99 | 0.99 | 1.07 | 1.04 | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 48,568 ÷ 35,902 = 1.35
2 Click competitor name to see calculations.
The analysis of liquidity metrics from March 2022 to March 2026 indicates a stable short-term financial position, characterized by current assets consistently exceeding current liabilities. While both assets and liabilities experienced overall growth over the period, the current ratio remained within a range of 1.28 to 1.45, demonstrating a maintained capacity to meet immediate financial obligations.
- Current Asset Trends
- Current assets displayed a general upward trajectory, rising from 42,570 million US$ in March 2022 to a peak of 52,485 million US$ in December 2025. A period of moderate fluctuation occurred between March 2024 and June 2024, where assets declined slightly before entering a sustained growth phase through the end of 2025.
- Current Liability Trends
- Current liabilities increased from 29,532 million US$ in March 2022 to 35,902 million US$ by March 2026. The growth in liabilities was most pronounced between March 2023 and June 2023, increasing from 31,842 million US$ to 35,314 million US$, which contributed to a temporary reduction in the liquidity ratio during that interval.
- Current Ratio Performance
- The current ratio fluctuated within a narrow band, reaching a minimum of 1.28 in June 2024 and peaks of 1.45 in June 2022 and September 2023. Following the low observed in mid-2024, the ratio recovered to 1.44 by December 2025 before moderating to 1.35 in March 2026. The persistence of the ratio above 1.0 throughout the entire period confirms a consistent liquidity cushion, suggesting that short-term assets are sufficient to cover short-term debts.
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Quick Ratio
Caterpillar Inc., quick ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 4,072) | 9,980) | 7,538) | 5,442) | 3,562) | 6,889) | 5,638) | 4,341) | 4,959) | 6,978) | 6,545) | 7,387) | 6,789) | 7,004) | 6,346) | 6,014) | 6,526) | ||||||
| Receivables, trade and other | 11,447) | 10,920) | 10,146) | 9,704) | 9,116) | 9,282) | 9,086) | 9,421) | 9,296) | 9,310) | 9,134) | 9,416) | 9,230) | 8,856) | 8,158) | 8,393) | 9,135) | ||||||
| Receivables, finance | 10,443) | 10,649) | 10,315) | 10,147) | 9,655) | 9,565) | 9,816) | 9,516) | 9,446) | 9,510) | 9,608) | 9,288) | 9,119) | 9,013) | 8,918) | 8,922) | 9,003) | ||||||
| Total quick assets | 25,962) | 31,549) | 27,999) | 25,293) | 22,333) | 25,736) | 24,540) | 23,278) | 23,701) | 25,798) | 25,287) | 26,091) | 25,138) | 24,873) | 23,422) | 23,329) | 24,664) | ||||||
| Current liabilities | 35,902) | 36,558) | 35,991) | 34,934) | 32,595) | 32,272) | 32,218) | 33,564) | 32,371) | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 0.72 | 0.86 | 0.78 | 0.72 | 0.69 | 0.80 | 0.76 | 0.69 | 0.73 | 0.74 | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 0.32 | 0.38 | 0.34 | 0.34 | 0.35 | 0.39 | 0.24 | 0.26 | 0.22 | 0.28 | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | ||||||
| Eaton Corp. plc | 0.61 | 0.66 | 0.65 | 0.63 | 0.74 | 0.85 | 0.87 | 0.94 | 0.93 | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | ||||||
| GE Aerospace | 0.67 | 0.71 | 0.73 | 0.70 | 0.74 | 0.78 | 0.81 | 0.81 | 0.76 | 0.78 | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | ||||||
| Honeywell International Inc. | 0.93 | 0.88 | 0.98 | 0.90 | 0.83 | 0.88 | 0.96 | 0.83 | 1.18 | 0.84 | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | ||||||
| Lockheed Martin Corp. | 0.91 | 0.90 | 0.93 | 0.80 | 0.87 | 0.92 | 1.10 | 1.05 | 1.08 | 0.99 | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | ||||||
| RTX Corp. | 0.65 | 0.67 | 0.67 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.64 | 0.63 | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,962 ÷ 35,902 = 0.72
2 Click competitor name to see calculations.
The liquidity profile shows a consistent trend where the quick ratio remains below 1.00 throughout the period from March 2022 to March 2026. This indicates that quick assets are consistently insufficient to cover current liabilities without the sale of inventory, reflecting a sustained reliance on operational cash flow or external financing to meet immediate short-term obligations.
- Quick Ratio Trends
- The quick ratio exhibits a general decline and fluctuation, starting at 0.84 in March 2022 and reaching troughs of 0.69 in June 2024 and March 2025. A notable recovery occurred in December 2025, when the ratio peaked at 0.86, the highest level in the series, before retreating to 0.72 by March 2026.
- Quick Asset Volatility
- Total quick assets demonstrate significant variance over the analyzed timeframe. Values fluctuated between a low of 22,333 million USD in March 2025 and a peak of 31,549 million USD in December 2025. These fluctuations suggest periodic shifts in the company's cash and near-cash positions.
- Current Liabilities Trajectory
- Current liabilities show a gradual and steady increase, rising from 29,532 million USD in March 2022 to a maximum of 36,558 million USD in December 2025. This upward trend in short-term obligations has acted as a primary driver in maintaining the quick ratio below the 1.00 threshold, as the growth in liabilities often outpaced the growth in quick assets.
- Correlation Analysis
- The most significant improvement in the quick ratio observed in December 2025 correlates directly with a sharp increase in total quick assets to 31,549 million USD, despite current liabilities also reaching near-peak levels. Conversely, the dips in the ratio during 2024 and early 2025 coincide with periods where quick assets fell toward the 22,000 to 23,000 million USD range.
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Cash Ratio
Caterpillar Inc., cash ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 4,072) | 9,980) | 7,538) | 5,442) | 3,562) | 6,889) | 5,638) | 4,341) | 4,959) | 6,978) | 6,545) | 7,387) | 6,789) | 7,004) | 6,346) | 6,014) | 6,526) | ||||||
| Total cash assets | 4,072) | 9,980) | 7,538) | 5,442) | 3,562) | 6,889) | 5,638) | 4,341) | 4,959) | 6,978) | 6,545) | 7,387) | 6,789) | 7,004) | 6,346) | 6,014) | 6,526) | ||||||
| Current liabilities | 35,902) | 36,558) | 35,991) | 34,934) | 32,595) | 32,272) | 32,218) | 33,564) | 32,371) | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 0.11 | 0.27 | 0.21 | 0.16 | 0.11 | 0.21 | 0.17 | 0.13 | 0.15 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 0.20 | 0.27 | 0.22 | 0.22 | 0.23 | 0.27 | 0.11 | 0.13 | 0.08 | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | ||||||
| Eaton Corp. plc | 0.06 | 0.09 | 0.06 | 0.06 | 0.20 | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | ||||||
| GE Aerospace | 0.27 | 0.32 | 0.36 | 0.33 | 0.38 | 0.42 | 0.47 | 0.47 | 0.43 | 0.45 | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | ||||||
| Honeywell International Inc. | 0.56 | 0.55 | 0.59 | 0.49 | 0.46 | 0.52 | 0.56 | 0.47 | 0.73 | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | ||||||
| Lockheed Martin Corp. | 0.09 | 0.18 | 0.15 | 0.05 | 0.09 | 0.13 | 0.18 | 0.14 | 0.16 | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | ||||||
| RTX Corp. | 0.12 | 0.13 | 0.11 | 0.09 | 0.10 | 0.11 | 0.13 | 0.12 | 0.12 | 0.14 | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,072 ÷ 35,902 = 0.11
2 Click competitor name to see calculations.
The cash ratio exhibited significant volatility between March 2022 and March 2026, fluctuating between a high of 0.27 and a low of 0.11. While the ratio remained relatively stable in the 0.20 to 0.22 range during 2022 and 2023, subsequent periods showed more pronounced swings in immediate liquidity. The overall trend indicates a recurring pattern of cash accumulation followed by sharp declines, coinciding with a general increase in short-term obligations.
- Cash Asset Volatility
- Total cash assets demonstrated substantial fluctuations, particularly from 2024 onwards. After maintaining a range between $6.0 billion and $7.4 billion through 2023, assets dipped to $4.34 billion in June 2024. A subsequent recovery led to a peak of $9.98 billion in December 2025, which was followed by a precipitous decline to $4.07 billion by March 2026.
- Growth in Current Liabilities
- Current liabilities followed a consistent upward trajectory for the majority of the analyzed period. Obligations rose from $29.53 billion in March 2022 to a peak of $36.56 billion in December 2025. This growth in short-term debt increased the volume of liquid assets required to maintain a stable cash ratio.
- Cash Ratio Analysis
- The cash ratio experienced two primary troughs of 0.11 in March 2025 and March 2026, marking periods of minimum immediate liquidity. The highest liquidity level was recorded in December 2025 at 0.27, a result of the peak in cash assets overriding the increase in current liabilities. The abrupt drop from 0.27 in December 2025 to 0.11 in March 2026 suggests a significant reallocation of cash or a substantial disbursement at the start of the 2026 fiscal year.
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