ALLENEUTRAL

ALLE Current Ratio Analysis

1.91x

Higher than 71% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Allegion's current ratio of 1.91x means the company has $1.91 in short-term assets for every $1.00 of short-term liabilities, indicating it can comfortably cover its near-term obligations.

Sector Performance

71th percentile

ALLE

1.91x

Sector Median

1.21x

Sector Avg

3.48x

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Deep Analysis

Allegion's current ratio of 1.91x means the company has $1.91 in short-term assets for every $1.00 of short-term liabilities, indicating it can comfortably cover its near-term obligations.

This ratio sits well above the Industrials sector median of 1.18x, placing it in the 80th percentile among sector peers. The trend information is not available: the year-over-year change, quarter-over-quarter change, and direction over the last eight quarters are all marked as N/A, leaving only this single data point. Because the level is strong relative to peers but there is no trend to gauge whether liquidity is improving or deteriorating, the metric offers a neutral signal for investment risk. This stable liquidity position supports the overall NEUTRAL verdict, as it neither adds risk nor provides a clear catalyst for a bullish or bearish view.

Frequently Asked Questions

What does the Current Ratio tell investors about ALLE?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does ALLE's Current Ratio compare to its sector?

ALLE's Current Ratio of 1.91x compares to a Industrials sector median of 1.21x, placing it in the 71th percentile.

Who are ALLE's closest peers by Current Ratio?

The closest Industrials peers by Current Ratio include: MMM (1.24x), BA (1.18x), AME (1.14x), AVY (1.13x), PWR (1.10x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.