Allegion PLC (ALLE)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,360,900 | 1,320,100 | 1,275,200 | 1,253,400 | 1,214,600 | 1,235,900 | 1,753,000 | 1,077,300 | 1,117,600 | 1,202,400 | 1,144,200 | 1,048,000 | 1,145,000 | 1,121,000 | 977,100 | 922,000 | 1,001,800 | 933,100 | 883,200 | 850,200 |
| 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 |
| Current ratio | 1.26 | 2.03 | 1.93 | 1.87 | 1.73 | 1.79 | 2.87 | 1.85 | 1.86 | 1.51 | 2.03 | 2.07 | 2.20 | 2.29 | 2.11 | 2.02 | 1.98 | 1.90 | 1.71 | 1.75 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,360,900K ÷ $1,079,700K
= 1.26
The current ratio of Allegion plc has shown fluctuations over the past eight quarters, ranging from a low of 1.26 in Q4 2023 to a high of 2.87 in Q2 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position, implying the company has more current assets to meet its current obligations.
In the most recent quarter, Q4 2023, the current ratio decreased to 1.26 from the previous quarter's 2.03. This drop may raise concerns about Allegion plc's liquidity position and its ability to cover its short-term liabilities. It's important to note that a current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations.
On the other hand, the current ratio was at its peak in Q2 2022 at 2.87, indicating a very strong liquidity position at that time. However, the ratio has fluctuated since then, reaching as low as 1.26 in the most recent quarter.
Overall, the trend in Allegion plc's current ratio suggests some volatility in its liquidity position over the past eight quarters. Investors and stakeholders may want to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations.