Allegion PLC (ALLE)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 355,300 | 232,900 | 157,800 | 153,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 507,000 | 491,200 | 517,100 | 485,400 |
| Cash ratio | 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 | 0.70 | 0.47 | 0.31 | 0.32 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($468,100K
+ $—K)
÷ $1,079,700K
= 0.43
The cash ratio of Allegion plc has displayed fluctuating trends over the past eight quarters. In Q1 2022, the cash ratio was unusually high at 1.62, indicating that the company had a significant amount of cash and cash equivalents on hand relative to its current liabilities. However, in subsequent quarters, the cash ratio decreased and remained relatively stable between 0.47 and 0.63, suggesting that Allegion plc may have utilized some of its cash reserves for other purposes or experienced changes in its current liabilities.
It is essential to note that a lower cash ratio implies that the company may have less liquidity to cover its short-term obligations, making it potentially vulnerable to liquidity or cash flow challenges. Therefore, monitoring Allegion plc's cash ratio trends is crucial to assess its ability to meet its short-term financial obligations and ensure financial stability.