Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Carrier Global Corp., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Current ratio | 1.64 | 1.72 | 1.67 | |
| Quick ratio | 1.05 | 0.81 | 1.15 | |
| Cash ratio | 0.58 | 0.45 | 0.61 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Carrier Global Corp. current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Carrier Global Corp. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Carrier Global Corp. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Current Ratio
Carrier Global Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current assets | 9,879) | 11,407) | 8,524) | |
| Current liabilities | 6,032) | 6,627) | 5,110) | |
| Liquidity Ratio | ||||
| Current ratio1 | 1.64 | 1.72 | 1.67 | |
| Benchmarks | ||||
| Current Ratio, Competitors2 | ||||
| Boeing Co. | 1.22 | 1.33 | 1.39 | |
| Caterpillar Inc. | 1.39 | 1.46 | 1.53 | |
| Eaton Corp. plc | 1.38 | 1.04 | 1.56 | |
| GE Aerospace | 1.16 | 1.28 | 1.58 | |
| Honeywell International Inc. | 1.25 | 1.30 | 1.47 | |
| Lockheed Martin Corp. | 1.32 | 1.42 | 1.39 | |
| RTX Corp. | 1.09 | 1.19 | 1.21 | |
| Current Ratio, Sector | ||||
| Capital Goods | 1.22 | 1.31 | 1.43 | |
| Current Ratio, Industry | ||||
| Industrials | 1.21 | 1.30 | 1.42 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,879 ÷ 6,032 = 1.64
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Carrier Global Corp. current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Quick Ratio
Carrier Global Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cash and cash equivalents | 3,520) | 2,987) | 3,115) | |
| Accounts receivable, net | 2,833) | 2,403) | 2,781) | |
| Total quick assets | 6,353) | 5,390) | 5,896) | |
| Current liabilities | 6,032) | 6,627) | 5,110) | |
| Liquidity Ratio | ||||
| Quick ratio1 | 1.05 | 0.81 | 1.15 | |
| Benchmarks | ||||
| Quick Ratio, Competitors2 | ||||
| Boeing Co. | 0.32 | 0.34 | 0.41 | |
| Caterpillar Inc. | 0.79 | 0.89 | 1.02 | |
| Eaton Corp. plc | 0.73 | 0.54 | 0.68 | |
| GE Aerospace | 0.81 | 0.93 | 1.27 | |
| Honeywell International Inc. | 0.88 | 0.94 | 1.15 | |
| Lockheed Martin Corp. | 1.09 | 1.15 | 1.05 | |
| RTX Corp. | 0.69 | 0.81 | 0.78 | |
| Quick Ratio, Sector | ||||
| Capital Goods | 0.64 | 0.71 | 0.83 | |
| Quick Ratio, Industry | ||||
| Industrials | 0.70 | 0.78 | 0.87 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,353 ÷ 6,032 = 1.05
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Carrier Global Corp. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Cash Ratio
Carrier Global Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cash and cash equivalents | 3,520) | 2,987) | 3,115) | |
| Total cash assets | 3,520) | 2,987) | 3,115) | |
| Current liabilities | 6,032) | 6,627) | 5,110) | |
| Liquidity Ratio | ||||
| Cash ratio1 | 0.58 | 0.45 | 0.61 | |
| Benchmarks | ||||
| Cash Ratio, Competitors2 | ||||
| Boeing Co. | 0.19 | 0.20 | 0.29 | |
| Caterpillar Inc. | 0.22 | 0.31 | 0.36 | |
| Eaton Corp. plc | 0.09 | 0.08 | 0.19 | |
| GE Aerospace | 0.44 | 0.54 | 0.78 | |
| Honeywell International Inc. | 0.51 | 0.59 | 0.79 | |
| Lockheed Martin Corp. | 0.16 | 0.26 | 0.23 | |
| RTX Corp. | 0.16 | 0.22 | 0.25 | |
| Cash Ratio, Sector | ||||
| Capital Goods | 0.26 | 0.32 | 0.44 | |
| Cash Ratio, Industry | ||||
| Industrials | 0.29 | 0.35 | 0.45 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,520 ÷ 6,032 = 0.58
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Carrier Global Corp. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |