Allegion PLC (ALLE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,360,900 | 1,214,600 | 1,117,600 | 1,145,000 | 1,001,800 |
| Total current liabilities | US$ in thousands | 1,079,700 | 703,600 | 601,200 | 521,500 | 507,000 |
| Current ratio | 1.26 | 1.73 | 1.86 | 2.20 | 1.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,360,900K ÷ $1,079,700K
= 1.26
The current ratio for Allegion plc has shown a declining trend over the past five years. In 2023, the current ratio stands at 1.26, a decrease from 1.73 in 2022 and 1.86 in 2021. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets.
Although a current ratio above 1 typically indicates that a company's current assets can cover its current liabilities, the decreasing trend of Allegion plc's current ratio warrants attention. It is important for investors and stakeholders to monitor the company's ability to manage its short-term financial obligations and liquidity position effectively. Further analysis of other liquidity ratios and factors impacting the company's current assets and liabilities may provide deeper insights into Allegion plc's financial health.