Carrier Global Corp (CARR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,015,000 | 3,902,000 | 3,209,000 | 3,347,000 | 3,520,000 | 2,985,000 | 3,017,000 | 3,604,000 | 2,987,000 | 2,671,000 | 2,630,000 | 2,599,000 | 3,115,000 | 3,848,000 | 2,704,000 | 768,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 1,619,000 | 1,572,000 | 1,530,000 | 1,513,000 | 1,696,000 | — | — |
| Receivables | US$ in thousands | 2,481,000 | 3,030,000 | 3,212,000 | 3,032,000 | 2,833,000 | 3,003,000 | 2,823,000 | 2,599,000 | 2,403,000 | 2,669,000 | 3,128,000 | 2,831,000 | 2,781,000 | 2,872,000 | 2,665,000 | 2,674,000 |
| 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 |
| 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 |
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 shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.
In Q4 2023, the quick ratio was 1.92, indicating that the company had $1.92 in liquid assets available to cover each dollar of current liabilities, reflecting a strong liquidity position. This was a significant improvement compared to the previous quarter, Q3 2023, where the quick ratio was 1.25.
The quick ratio had been relatively stable in the preceding quarters, ranging from 1.18 to 1.31, with Q1 2022 being the lowest at 1.18 and Q2 2022 being the highest at 1.31.
Overall, the upward trend in the quick ratio from Q3 2023 to Q4 2023 suggests an improvement in Carrier Global Corp's ability to meet its short-term obligations using its most liquid assets. However, it is important to monitor this ratio over time to ensure the company maintains a healthy liquidity position.
Peer comparison
Dec 31, 2023