Carrier Global Corp (CARR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,015,000 | 3,520,000 | 2,987,000 | 3,115,000 |
| Short-term investments | US$ in thousands | — | — | — | 1,513,000 |
| Receivables | US$ in thousands | 2,481,000 | 2,833,000 | 2,403,000 | 2,781,000 |
| Total current liabilities | US$ in thousands | 6,891,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Quick ratio | 1.81 | 1.05 | 0.81 | 1.45 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,015,000K
+ $—K
+ $2,481,000K)
÷ $6,891,000K
= 1.81
The quick ratio of Carrier Global Corp has fluctuated over the past five years, exhibiting volatility in its ability to meet short-term obligations with its most liquid assets. The ratio stood at 1.04 in 2019, indicating that the company had just enough liquid assets to cover its current liabilities. In 2020, the quick ratio improved to 1.35, suggesting a stronger liquidity position. However, there was a decline in 2021, with the quick ratio dropping to 0.95, which may raise concerns about the company's ability to meet immediate payment obligations. The ratio rebounded significantly in 2022 to 1.20 and further increased in 2023 to 1.92, indicating a healthier liquidity position in recent years. Overall, the trend in the quick ratio indicates varying levels of liquidity risk management by Carrier Global Corp over the analyzed period.
Peer comparison
Dec 31, 2023