The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Carrier Global's quick ratio for the quarter that ended in Sep. 2024 was 0.82.
Carrier Global has a quick ratio of 0.82. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Carrier Global's Quick Ratio or its related term are showing as below:
MEX:CARR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.8 Med: 1.23 Max: 2.4
Current: 0.82
During the past 7 years, Carrier Global's highest Quick Ratio was 2.40. The lowest was 0.80. And the median was 1.23.
MEX:CARR's Quick Ratio is ranked worse than 80.39% of 1739
companies
in the Construction industry
Industry Median: 1.29
vs MEX:CARR: 0.82
Carrier Global Quick Ratio Historical Data
The historical data trend for Carrier Global's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Carrier Global's Quick Ratio
For the Building Products & Equipment subindustry, Carrier Global's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carrier Global's Quick Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Carrier Global's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Carrier Global's Quick Ratio falls into.
Carrier Global Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Carrier Global's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Carrier Global (MEX:CARR) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Carrier Global Quick Ratio Related Terms
Thank you for viewing the detailed overview of Carrier Global's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Carrier Global manufactures heating, ventilation, and air conditioning, refrigeration, and fire and security products. The HVAC business serves both residential and commercial markets (HVAC segment sales mix is 60% commercial and 40% residential). Carrier's refrigeration segment consists of its transportation refrigeration, Sensitech supply chain monitoring, and commercial refrigeration businesses. The firm's fire and security business manufactures fire detection and suppression, access controls, and intrusion detection products. In April 2023, Carrier announced that it plans to divest its fire and security and commercial refrigeration businesses. The firm also acquired Germany-based Viessmann for approximately $13 billion.
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