Carlisle Companies Incorporated (CSL)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.87 | 4.18 | 2.58 | 2.31 | 2.08 | 1.79 | 2.01 | 1.88 | 1.84 | 2.45 | 3.30 | 3.25 | 3.42 | 3.31 | 3.51 | 4.33 | 1.95 | 3.04 | 2.96 | 2.96 |
| Quick ratio | 1.00 | 1.00 | 1.28 | 1.24 | 1.14 | 1.08 | 1.21 | 1.09 | 0.97 | 1.38 | 1.88 | 2.19 | 2.34 | 2.22 | 2.31 | 3.11 | 1.26 | 2.20 | 2.06 | 2.04 |
| Cash ratio | 0.49 | 0.12 | 0.36 | 0.46 | 0.37 | 0.38 | 0.27 | 0.25 | 0.28 | 0.35 | 0.94 | 1.15 | 1.40 | 1.10 | 1.19 | 1.97 | 0.39 | 0.95 | 0.65 | 0.82 |
Analysis of Carlisle Companies Inc.'s liquidity ratios reveals fluctuations in its ability to meet short-term obligations and manage cash effectively over the past eight quarters. The current ratio, which measures the company's ability to pay off current liabilities with current assets, has shown a general increasing trend from Q1 2022 to Q3 2023, indicating improved liquidity. However, the sharp drop in Q4 2023 may signal potential liquidity concerns.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited variation but generally remained above 1, indicating that Carlisle has sufficient liquid assets to cover immediate liabilities. Despite some fluctuations, the quick ratio has not shown any significant red flags throughout the period.
The cash ratio, which assesses the company's ability to cover current liabilities solely with cash and cash equivalents, has shown mixed performance. While there was a significant improvement in Q3 2023, the latest figure in Q4 2023 dropped considerably, suggesting a potential strain on the company's ability to meet obligations with cash on hand.
In conclusion, Carlisle Companies Inc.'s liquidity ratios have displayed some improvements in liquidity over the past few quarters, as indicated by the current and quick ratios. However, the recent decline in the current and cash ratios in Q4 2023 raises concerns regarding the company's short-term liquidity position and its ability to manage cash effectively. Further analysis and monitoring of these ratios will be essential to better understand the company's liquidity position and potential risks.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 63.33 | 68.80 | 95.10 | 89.71 | 71.17 | 87.75 | 88.92 | 84.52 | 76.27 | 78.45 | 70.33 | 79.33 | 69.61 | 81.63 | 80.20 | 75.20 | 78.85 | 80.97 | 86.15 | 79.04 |
The cash conversion cycle of Carlisle Companies Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 63.33 days, indicating an improvement compared to the previous quarter where it was 58.40 days. This suggests that the company was able to manage its working capital more efficiently during this period.
However, looking back to Q2 and Q1 of 2023, the cash conversion cycle was 77.07 days and 77.99 days, respectively, showing a prolonged period for the company to convert its investments in inventory and receivables into cash. This could potentially indicate inefficiencies in managing its working capital during those quarters.
Comparing the latest quarter to the same period in the previous year, the cash conversion cycle has decreased from 77.05 days in Q4 2022 to 63.33 days in Q4 2023, indicating a positive trend in the company's ability to convert its resources into cash more quickly.
Overall, a lower cash conversion cycle is favorable as it signifies that the company is efficiently managing its working capital, turning inventory and receivables into cash promptly. Carlisle Companies Inc. should continue to monitor and work on optimizing its cash conversion cycle to enhance its liquidity and overall financial performance.