Carrier Global Corp (CARR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,969,000 | 9,852,000 | 3,520,000 | 2,987,000 | 3,115,000 |
| Short-term investments | US$ in thousands | — | 163,000 | — | — | 1,513,000 |
| Total current liabilities | US$ in thousands | 7,892,000 | 6,981,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Cash ratio | 0.50 | 1.43 | 0.58 | 0.45 | 0.91 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,969,000K
+ $—K)
÷ $7,892,000K
= 0.50
The cash ratio of Carrier Global Corp has exhibited some variation over the years:
- As of December 31, 2020, the cash ratio was 0.91, indicating that the company had $0.91 in cash and cash equivalents for every $1 of current liabilities. This was a relatively strong position.
- By December 31, 2021, the cash ratio decreased to 0.45, implying a decline in the company's ability to cover its short-term obligations with its cash reserves. This may have indicated a need for improved liquidity management.
- There was a slight improvement by December 31, 2022, with the cash ratio increasing to 0.58. However, the ratio was still lower than the 2020 level, suggesting that the company's liquidity position was still a concern.
- By December 31, 2023, the cash ratio significantly improved to 1.43, showing a notable strengthening of the company's ability to meet its short-term liabilities with its cash resources. This was a positive sign of improved liquidity management.
- The cash ratio slightly decreased to 0.50 by December 31, 2024, but still remained above the 2021 and 2022 levels. This indicated that the company continued to maintain a relatively favorable liquidity position despite the downturn.
Overall, the fluctuation in Carrier Global Corp's cash ratio over the years suggests varying levels of liquidity management and the company's ability to handle short-term obligations with its cash reserves.
Peer comparison
Dec 31, 2024