Allegion PLC (ALLE)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($503,800K
+ $—K
+ $—K)
÷ $696,900K
= 0.72
Allegion PLC's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the past few years. The quick ratio started at a relatively low level of 0.54 as of March 31, 2020, indicating a potential liquidity challenge. However, the ratio improved gradually, reaching a peak of 1.51 as of June 30, 2022, suggesting a strong ability to cover short-term liabilities with liquid assets.
Following the peak, the quick ratio experienced a decline, dropping to 0.38 by March 31, 2024. This decline could raise concerns about Allegion's liquidity position, as the company may face difficulties in meeting its short-term obligations. However, the ratio saw a slight improvement to 0.72 by June 30, 2024.
Overall, the fluctuating trend in Allegion PLC's quick ratio indicates varying levels of liquidity over the years, with periods of strength and potential areas of improvement. It would be important for the company to closely monitor its liquidity position and ensure a healthy balance between liquid assets and short-term liabilities to maintain financial stability.