Carrier Global Corp (CARR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,780,000 | 9,879,000 | 11,407,000 | 8,524,000 |
| Total current liabilities | US$ in thousands | 6,891,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Current ratio | 2.73 | 1.64 | 1.72 | 1.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,780,000K ÷ $6,891,000K
= 2.73
The current ratio of Carrier Global Corp has shown an increasing trend over the past five years, indicating an improvement in its short-term liquidity position. The ratio has increased from 1.34 in 2019 to 2.73 in 2023. This suggests that the company's current assets are more than double its current liabilities in the most recent year, providing a healthy buffer to meet its short-term obligations.
The significant improvement in the current ratio over the years reflects a strengthening financial position and better ability to cover its short-term liabilities with its current assets. This could be attributed to effective management of working capital, better inventory management, efficient cash flow generation, or a reduction in current liabilities.
A current ratio of 2.73 as of December 31, 2023, indicates that Carrier Global Corp is well-positioned to meet its short-term financial obligations and demonstrates good liquidity management within the organization. However, it is essential to monitor the trend of the ratio over time for any potential changes in the company's liquidity position.
Peer comparison
Dec 31, 2023