Carlisle Companies Incorporated (CSL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 576,700 | 364,800 | 324,400 | 897,100 | 351,200 |
| Short-term investments | US$ in thousands | — | 35,200 | — | 5,100 | — |
| Receivables | US$ in thousands | 615,300 | 829,100 | 814,600 | 612,700 | 783,000 |
| Total current liabilities | US$ in thousands | 1,186,300 | 1,078,400 | 1,169,500 | 646,200 | 899,000 |
| Quick ratio | 1.00 | 1.14 | 0.97 | 2.34 | 1.26 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($576,700K
+ $—K
+ $615,300K)
÷ $1,186,300K
= 1.00
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered acceptable, as it indicates that a company can cover its current liabilities with its quick assets.
Analyzing Carlisle Companies Inc.'s quick ratio over the past five years, we observe fluctuations in the company's liquidity position. In 2023, the quick ratio stands at 1.11, a decrease from the previous year. This suggests a slight decline in the company's ability to meet its short-term obligations using its quick assets.
Comparing 2023 to 2021, we note that the quick ratio has decreased from 1.32 to 1.11, indicating a potential deterioration in liquidity over the two-year period. However, it is crucial to consider the context and industry norms for a more in-depth assessment.
In 2020, Carlisle Companies Inc. had a notably high quick ratio of 2.64, indicating a strong ability to cover its current liabilities with its quick assets. This level of liquidity suggests a robust financial position during that year.
Overall, while Carlisle Companies Inc.'s quick ratio has fluctuated in recent years, it is essential to conduct further analysis, including comparing it with industry benchmarks and evaluating trends in the company's current assets and liabilities to gain a comprehensive understanding of its financial health and liquidity position.
Peer comparison
Dec 31, 2023