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. CNH Industrial NV's current ratio for the quarter that ended in Dec. 2024 was 2.16.
CNH Industrial NV has a current ratio of 2.16. It generally indicates good short-term financial strength.
The historical rank and industry rank for CNH Industrial NV's Current Ratio or its related term are showing as below:
FRA:37C'
s Current Ratio Range Over the Past 10 Years
Min: 2.02 Med: 3.52 Max: 5.27
Current: 2.16
During the past 13 years, CNH Industrial NV's highest Current Ratio was 5.27. The lowest was 2.02. And the median was 3.52.
FRA:37C's Current Ratio is ranked better than 66.35% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.73
vs FRA:37C: 2.16
CNH Industrial NV Current Ratio Historical Data
The historical data trend for CNH Industrial NV'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.
Competitive Comparison of CNH Industrial NV's Current Ratio
For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.
CNH Industrial NV's Current Ratio Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Current Ratio distribution charts can be found below:
* The bar in red indicates where CNH Industrial NV's Current Ratio falls into.
* 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.
CNH Industrial NV (FRA:37C) 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.
CNH Industrial NV Current Ratio Related Terms
Thank you for viewing the detailed overview of CNH Industrial NV's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
CNH Industrial is the world's second largest manufacturer of agricultural machinery (82% of industrial net sales) as well as a major player in construction equipment (18% of industrial net sales). Its Case and New Holland brands have served farmers for generations. Geographically, agriculture sales are 40% North America, 32% Europe, Middle East, and Africa, 18% South America, and 10% Asia-Pacific. CNH's products are available through a robust independent dealer network, which includes over 2,600 dealer and distribution locations and reach into 164 countries. The construction business leverages over 400 dealers. The company's captive finance arm provides retail financing to its customers as well as wholesale financing for dealers to maintain inventory, which supports sales.
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