Carrier Global Corp (CARR)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,015,000 | 3,902,000 | 3,209,000 | 3,347,000 | 3,520,000 | 2,985,000 | 3,017,000 | 3,604,000 | 2,987,000 | 2,671,000 | 2,630,000 | 2,599,000 | 3,115,000 | 3,848,000 | 2,704,000 | 768,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 1,619,000 | 1,572,000 | 1,530,000 | 1,513,000 | 1,696,000 | — | — |
| Total current liabilities | US$ in thousands | 6,891,000 | 6,349,000 | 6,234,000 | 5,958,000 | 6,032,000 | 6,013,000 | 5,546,000 | 5,531,000 | 6,627,000 | 6,068,000 | 5,604,000 | 5,138,000 | 5,110,000 | 5,182,000 | 4,789,000 | 4,451,000 |
| Cash ratio | 1.45 | 0.61 | 0.51 | 0.56 | 0.58 | 0.50 | 0.54 | 0.65 | 0.45 | 0.71 | 0.75 | 0.80 | 0.91 | 1.07 | 0.56 | 0.17 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,015,000K
+ $—K)
÷ $6,891,000K
= 1.45
The cash ratio of Carrier Global Corp has shown fluctuation over the past eight quarters. In Q4 2023, the cash ratio was 1.56, indicating that the company had $1.56 in cash and cash equivalents for every dollar of current liabilities. This marked a significant increase from the previous quarter, where the cash ratio was 0.77.
The trend in the cash ratio over the last year has been somewhat volatile, with ratios ranging from 0.68 to 1.56. Q4 2022 and Q1 2022 both had similar cash ratios of 0.73 and 0.84, respectively, suggesting relative stability in the company's liquidity position during that period.
The lower cash ratios in the second and third quarters of 2023 (0.68 and 0.74) may indicate a temporary strain on the company's ability to meet its short-term obligations with cash on hand. However, the significant improvement in Q4 2023 implies a stronger liquidity position at the end of the year.
Overall, the cash ratio of Carrier Global Corp has shown variability, but the recent increase in Q4 2023 suggests an improvement in the company's ability to cover its current liabilities with available cash.
Peer comparison
Dec 31, 2023