Carrier Global Corp (CARR)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.81 | 1.09 | 1.03 | 1.07 | 1.05 | 1.00 | 1.05 | 1.12 | 0.81 | 1.15 | 1.31 | 1.35 | 1.45 | 1.62 | 1.12 | 0.77 |
| 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 |
Carrier Global Corp's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has been relatively healthy, ranging from 1.62 to 2.73. This indicates that Carrier has had a comfortable margin of current assets to meet its current obligations.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also reflects a favorable trend, ranging from 1.18 to 1.92. This suggests that Carrier has a good ability to meet its short-term obligations using its most liquid assets.
The cash ratio, which is the most stringent measure of liquidity as it compares cash and cash equivalents to current liabilities, has shown a similar pattern of stability, ranging from 0.68 to 1.56. This indicates that Carrier has maintained a sufficient level of cash reserves to cover its immediate liabilities.
Overall, based on the analysis of liquidity ratios, Carrier Global Corp appears to have a strong liquidity position, with consistent ratios indicating its ability to meet its short-term obligations effectively.
See also:
Carrier Global Corp Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -11.06 | 14.78 | 23.72 | 37.59 | 22.31 | 31.70 | 42.07 | 25.46 | 2.30 | 22.33 | 2.92 | 17.70 | 21.27 |
Carrier Global Corp's cash conversion cycle has fluctuated over the past eight quarters. In Q1 2022, the company's cash conversion cycle was 42.12 days, increasing to 49.34 days in Q2 2022 before decreasing slightly to 49.84 days in Q3 2022. However, in Q4 2022, there was a notable decrease to 45.93 days. This downward trend continued into Q1 2023, with the cash conversion cycle further reducing to 49.70 days.
Subsequently, there was a significant improvement in Q2 2023, with the cash conversion cycle decreasing to 47.85 days. This positive trend continued in Q3 2023, with a further reduction to 42.58 days. Finally, in Q4 2023, the cash conversion cycle decreased even more to 28.79 days, indicating the company's ability to efficiently convert its investments in raw materials and production into cash receipts from customers.
Overall, Carrier Global Corp has shown fluctuations in its cash conversion cycle over the quarters, but the recent downward trend signifies improved efficiency in managing working capital and converting it into cash.