Carrier Global Corp (CARR)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,969,000 | 2,225,000 | 2,919,000 | 1,313,000 | 9,852,000 | 3,685,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 163,000 | 217,000 | — | — | — | — | — | — | — | 1,619,000 | 1,572,000 | 1,530,000 | 1,513,000 |
| Total current liabilities | US$ in thousands | 7,892,000 | 10,378,000 | 10,675,000 | 8,637,000 | 6,981,000 | 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 |
| Cash ratio | 0.50 | 0.21 | 0.27 | 0.15 | 1.43 | 0.61 | 0.51 | 0.56 | 0.58 | 0.50 | 0.54 | 0.65 | 0.45 | 0.71 | 0.75 | 0.80 | 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 fluctuated over the period of observation. From December 31, 2020, to December 31, 2022, the cash ratio steadily declined from 0.91 to 0.58, indicating a decreasing ability to cover short-term liabilities solely with cash and cash equivalents. However, there was a significant spike in the cash ratio to 1.43 on December 31, 2023, suggesting a substantial improvement in the company's liquidity position.
Subsequently, the cash ratio sharply dropped to 0.15 on March 31, 2024, reflecting a significant decrease in available cash relative to current liabilities. The ratio recovered slightly to 0.27 on June 30, 2024, but remained relatively low. The trend continued to September 30, 2024, with a cash ratio of 0.21, indicating a continued strain on the company's ability to quickly meet its short-term obligations with its existing cash holdings.
Overall, the cash ratio analysis demonstrates fluctuations in Carrier Global Corp's liquidity position over the observed period, with some periods showing stronger liquidity coverage than others. Further monitoring and analysis of the company's cash management practices and overall financial health may be necessary to understand the reasons behind these fluctuations and their potential impact on the company's operations.
Peer comparison
Dec 31, 2024