Caterpillar Inc. (CAT) is one of the worlds largest manufacturers of construction and mining equipment with revenue
Question:
Caterpillar Inc. (CAT) is one of the world’s largest manufacturers of construction and mining equipment with revenue over $50 billion per year. The following year-end data were taken from a recent Caterpillar balance sheet (in millions):
a. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. Round to two decimal places.
b. What conclusions concerning the company’s ability to meet its short-term obligations can you draw from part (a)?
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a b Caterpillars working capital increased from 10385 million in Year 1 to 12572 million in Year 2 ...View the full answer
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