Carrier Global Corp (CARR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,969,000 | 9,852,000 | 3,520,000 | 2,987,000 | 3,115,000 |
| Short-term investments | US$ in thousands | — | 163,000 | — | — | 1,513,000 |
| Receivables | US$ in thousands | 2,651,000 | 2,080,000 | 2,833,000 | 2,403,000 | 2,781,000 |
| Total current liabilities | US$ in thousands | 7,892,000 | 6,981,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Quick ratio | 0.84 | 1.73 | 1.05 | 0.81 | 1.45 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,969,000K
+ $—K
+ $2,651,000K)
÷ $7,892,000K
= 0.84
The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. Looking at the historical quick ratio trend of Carrier Global Corp from 2020 to 2024, we can observe fluctuations in the company's liquidity position.
- As of December 31, 2020, Carrier Global Corp had a quick ratio of 1.45, indicating that the company had $1.45 in liquid assets for every $1 of current liabilities, suggesting a relatively healthy liquidity position.
- However, by December 31, 2021, the quick ratio had decreased to 0.81, signaling a decline in the company's ability to cover its short-term obligations with its liquid assets. This may raise concerns about its liquidity position.
- The quick ratio improved to 1.05 by December 31, 2022, reflecting a recovery in liquidity compared to the previous year but still below the 2020 level.
- By December 31, 2023, the quick ratio further increased to 1.73, showing a significant improvement in the company's liquidity position, indicating a stronger ability to meet short-term obligations with liquid assets.
- However, the quick ratio dropped to 0.84 by December 31, 2024, which is lower than the levels seen in 2020 and 2022, potentially suggesting a deterioration in the company's liquidity position.
In conclusion, Carrier Global Corp's quick ratio has shown fluctuations over the years, with improvements in some years and declines in others. It is essential for stakeholders to monitor these changes to assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2024