Carrier Global Corp (CARR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,891,000 | 11,194,000 | 11,573,000 | 11,715,000 | 19,576,000 | 10,511,000 | 10,141,000 | 10,158,000 | 9,879,000 | 9,740,000 | 9,276,000 | 9,602,000 | 11,407,000 | 11,300,000 | 8,754,000 | 8,328,000 | 8,524,000 |
| 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 |
| Current ratio | 1.25 | 1.08 | 1.08 | 1.36 | 2.80 | 1.66 | 1.63 | 1.70 | 1.64 | 1.62 | 1.67 | 1.74 | 1.72 | 1.86 | 1.56 | 1.62 | 1.67 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,891,000K ÷ $7,892,000K
= 1.25
The current ratio of Carrier Global Corp has shown fluctuations over the periods provided, ranging from a low of 1.08 to a high of 2.80. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates that the company can meet its short-term obligations.
The trend in Carrier Global Corp's current ratio suggests some variability in its liquidity position. Generally, a current ratio above 1 is considered healthy, as it indicates that the company has more current assets than current liabilities. However, significant fluctuations in the current ratio may warrant further investigation into the company's liquidity management and working capital practices.
It is important to note that a current ratio that is too high may suggest an inefficient use of resources, while a current ratio that is too low may indicate liquidity issues and potential difficulty in meeting short-term obligations. Therefore, a balance needs to be maintained to ensure optimal liquidity management.
Overall, the trend in Carrier Global Corp's current ratio indicates varying levels of liquidity over the periods reported, highlighting the importance of closely monitoring and managing the company's short-term financial health.
Peer comparison
Dec 31, 2024