Allegion PLC (ALLE)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 421,700 | 439,700 | 423,200 | 445,000 | 395,600 | 422,500 | 333,300 | 324,300 | 283,300 | 307,400 | 316,900 | 312,600 | 321,800 | 350,900 | 329,200 | 343,100 | 329,800 | 367,500 | 380,000 | 359,600 |
| 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 |
| Quick ratio | 0.82 | 1.24 | 1.13 | 1.10 | 0.97 | 1.02 | 2.05 | 1.08 | 1.13 | 1.02 | 1.38 | 1.40 | 1.54 | 1.59 | 1.36 | 1.29 | 1.35 | 1.22 | 1.04 | 1.06 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($468,100K
+ $—K
+ $421,700K)
÷ $1,079,700K
= 0.82
The quick ratio of Allegion plc has fluctuated over the past eight quarters, ranging from a low of 0.85 in Q4 2023 to a high of 2.17 in Q2 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that Allegion plc has an adequate level of liquid assets to cover its short-term liabilities.
In Q4 2023, the quick ratio decreased to 0.85, suggesting a potential liquidity strain as the company may have had difficulty meeting its short-term obligations with its liquid assets alone. This could be a cause for concern as it may indicate a weakened ability to pay off current liabilities without relying on selling inventory.
Conversely, in Q2 2022, the quick ratio peaked at 2.17, indicating a strong liquidity position for Allegion plc during that period. The significant increase in the quick ratio in Q2 2022 may suggest improved liquidity management or a reduction in short-term liabilities relative to liquid assets.
Overall, Allegion plc's quick ratio trend indicates some volatility in its liquidity position, with fluctuations above and below the ideal ratio of 1. Investors and stakeholders may want to monitor this ratio closely to assess the company's ability to meet its short-term obligations effectively.