Carlisle Companies Incorporated (CSL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 576,700 | 364,800 | 324,400 | 897,100 | 351,200 |
| Short-term investments | US$ in thousands | — | 35,200 | — | 5,100 | — |
| Total current liabilities | US$ in thousands | 1,186,300 | 1,078,400 | 1,169,500 | 646,200 | 899,000 |
| Cash ratio | 0.49 | 0.37 | 0.28 | 1.40 | 0.39 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($576,700K
+ $—K)
÷ $1,186,300K
= 0.49
The cash ratio of Carlisle Companies Inc. has been fluctuating over the past five years, as indicated in the table provided. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio signifies a stronger ability to meet short-term obligations without relying on external financing.
In 2020, Carlisle Companies Inc. had a notably high cash ratio of 1.69, which indicated a strong liquidity position and the ability to easily cover short-term liabilities with cash on hand. However, in the following years, the cash ratio declined, reaching 0.59 in 2023. This decrease may suggest a lower level of liquidity relative to short-term liabilities in the most recent year.
The decreasing trend in the cash ratio over the past few years may warrant further analysis to understand the reasons behind the decline. It could be a result of various factors such as changes in the company's cash flows, investments in business expansion, or changes in working capital management.
Overall, while Carlisle Companies Inc. has demonstrated liquidity over the years, the decreasing trend in the cash ratio calls for attention to ensure the company maintains an adequate level of liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023