Allegion PLC (ALLE)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,422,300 | 1,360,900 | 1,214,600 | 1,117,600 | 1,145,000 |
| Total current liabilities | US$ in thousands | 696,900 | 1,079,700 | 703,600 | 601,200 | 521,500 |
| Current ratio | 2.04 | 1.26 | 1.73 | 1.86 | 2.20 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,422,300K ÷ $696,900K
= 2.04
The current ratio of Allegion PLC has shown a gradual decline over the past few years, decreasing from 2.20 as of December 31, 2020, to 1.86 as of December 31, 2021, and further to 1.73 as of December 31, 2022. This decline may indicate a potential weakening in the company's ability to meet its short-term obligations with its current assets.
However, there was a significant drop in the current ratio to 1.26 as of December 31, 2023, suggesting a potential liquidity challenge or increased financial strain during that period. It's important for stakeholders to closely monitor the company's liquidity position and assess its ability to cover its short-term liabilities.
The current ratio did improve to 2.04 as of December 31, 2024, signaling a better ability to meet current obligations with current assets compared to the previous year. This increase could be a positive sign of improved liquidity and financial health for Allegion PLC. Stakeholders should continue to track the current ratio to assess the company's short-term liquidity position and financial stability.