Carrier Global Corp (CARR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,780,000 | 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 | 9,334,000 | 8,053,000 | 5,968,000 |
| 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 |
| Current ratio | 2.73 | 1.66 | 1.63 | 1.70 | 1.64 | 1.62 | 1.67 | 1.74 | 1.72 | 1.86 | 1.56 | 1.62 | 1.67 | 1.80 | 1.68 | 1.34 |
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 fluctuations over the past eight quarters. In Q4 2023, the current ratio was 2.73, indicating a significant increase from the previous quarter's ratio of 1.66. This substantial improvement suggests that the company's current assets, such as cash, accounts receivable, and inventory, are more than sufficient to cover its current liabilities within the next year.
However, in the preceding quarters, the current ratio ranged between 1.63 and 1.74, reflecting less liquidity and potentially higher risk for the company's short-term financial obligations. The current ratio below 2 in most quarters indicates that Carrier Global Corp may have been relying more on short-term liabilities to finance its operations.
Overall, while the current ratio has improved in Q4 2023, it is essential for Carrier Global Corp to consistently manage its liquidity position to ensure its ability to meet its short-term obligations and sustain its financial health.
Peer comparison
Dec 31, 2023