DE Current Ratio Analysis

The current ratio of 2.26x means that Deere has $2.26 in current assets (like cash and receivables) for every $1.00 of current liabilities due within a year, indicating solid short-term liquidity.

This ratio places Deere well above the sector median of 1.20x, landing in the 83rd percentile among peers — meaning it has more liquidity coverage than 83% of comparable companies. Over the last eight quarters, the metric has been increasing, with a quarter-over-quarter jump of +186.1% from the prior period’s 0.79x to the current 2.26x; year-over-year data is not available for comparison. The combination of a high current ratio and an upward trend suggests a low risk of short-term payment issues, but the sharp QoQ rise may reflect temporary factors like a large cash buildup or reduced payables that could reverse. This strong liquidity position at first appears positive, yet it partially contradicts the overall CAUTIOUS verdict because elevated liquidity can sometimes signal inefficient use of assets or a defensive posture that drags on returns. Overall, the metric does not directly support the cautious outlook — it instead highlights a financial buffer that reduces immediate distress risk.

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