Allegion PLC (ALLE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 503,800 | 468,100 | 288,000 | 397,900 | 480,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 696,900 | 1,079,700 | 703,600 | 601,200 | 521,500 |
| Cash ratio | 0.72 | 0.43 | 0.41 | 0.66 | 0.92 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($503,800K
+ $—K)
÷ $696,900K
= 0.72
The cash ratio of Allegion PLC has experienced fluctuations over the five-year period between December 31, 2020, and December 31, 2024.
- In December 31, 2020, the cash ratio was 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of current liabilities.
- By December 31, 2021, the cash ratio had decreased to 0.66. This reduction suggests that Allegion PLC had a lower level of cash reserves relative to its current liabilities.
- The trend continued as the cash ratio declined further to 0.41 by December 31, 2022, and then increased slightly to 0.43 by December 31, 2023. These lower ratios may indicate potential liquidity challenges or a shift in the company's liquidity management strategy.
- However, by December 31, 2024, the cash ratio had improved to 0.72, signaling a higher level of liquidity compared to previous years.
Overall, the fluctuating cash ratio of Allegion PLC reflects changes in the company's cash position relative to its current liabilities over the five-year period. Investors and stakeholders may need to closely monitor this ratio to assess the company's liquidity risk and financial health.