Allegion PLC (ALLE)
Cash ratio
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 503,800 | 878,900 | 747,500 | 391,800 | 468,100 | 364,300 | 322,600 | 292,800 | 288,000 | 282,200 | 919,600 | 305,100 | 397,900 | 503,900 | 460,200 | 394,300 | 480,400 | 428,900 | 302,400 | 245,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 696,900 | 1,091,500 | 1,034,200 | 1,025,400 | 1,079,700 | 649,800 | 660,800 | 668,500 | 703,600 | 689,200 | 610,400 | 581,500 | 601,200 | 793,900 | 564,100 | 505,600 | 521,500 | 489,100 | 463,700 | 456,700 |
| Cash ratio | 0.72 | 0.81 | 0.72 | 0.38 | 0.43 | 0.56 | 0.49 | 0.44 | 0.41 | 0.41 | 1.51 | 0.52 | 0.66 | 0.63 | 0.82 | 0.78 | 0.92 | 0.88 | 0.65 | 0.54 |
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 for Allegion PLC has fluctuated over the past several periods, ranging from as low as 0.38 to as high as 1.51. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In general, a higher cash ratio indicates a better ability to cover short-term obligations. However, a very high ratio could also suggest that the company is holding onto excess cash that is not being efficiently utilized for growth or other purposes.
Analyzing the trend, we can see that the cash ratio peaked in the June 30, 2022 quarter at 1.51, which may suggest strong liquidity at that point in time. Subsequently, it decreased to 0.38 by March 31, 2024, indicating a potential decrease in liquidity.
It is important for investors and stakeholders to monitor the cash ratio along with other financial ratios to get a comprehensive view of Allegion PLC's financial health and liquidity position.