Carrier Global Corp (CARR)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | US$ in thousands | 3,969,000 | 2,225,000 | 2,919,000 | 1,313,000 | 9,852,000 | 3,685,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 163,000 | 217,000 | — | — | — | — | — | — | — | 1,619,000 | 1,572,000 | 1,530,000 | 1,513,000 |
| Receivables | US$ in thousands | 2,651,000 | 2,726,000 | 3,187,000 | 3,156,000 | 2,080,000 | 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 |
| Total current liabilities | US$ in thousands | 7,892,000 | 10,378,000 | 10,675,000 | 8,637,000 | 6,981,000 | 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 |
| Quick ratio | 0.84 | 0.48 | 0.57 | 0.52 | 1.73 | 1.09 | 1.03 | 1.07 | 1.05 | 1.00 | 1.05 | 1.12 | 0.81 | 1.15 | 1.31 | 1.35 | 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 of Carrier Global Corp provides insight into the company's ability to meet its short-term obligations with its most liquid assets. Looking at the trend of the quick ratio from December 31, 2020, to December 31, 2024, we observe fluctuations in the ratio.
The quick ratio started at a comfortable level of 1.45 on December 31, 2020, indicating that the company had $1.45 in liquid assets available to cover each $1 of current liabilities. However, the ratio declined over the following quarters, dropping to its lowest point of 0.48 on September 30, 2024. This downward trend suggests a potential strain on the company's short-term liquidity position.
It is worth noting that there were some periods where the quick ratio improved, such as the peak of 1.73 on December 31, 2023, indicating a temporary strengthening of the company's ability to meet short-term obligations with quick assets.
The decrease in the quick ratio towards the end of the period indicates a possible need for closer monitoring of the company's liquidity position. It is crucial for investors and stakeholders to assess whether the declining trend is a result of strategic decisions or potential financial challenges that may require management's attention and action.
Peer comparison
Dec 31, 2024