Constellation Energy Corp (CEG)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.57 | 1.70 | 1.35 | 1.43 | 1.31 | 1.88 | 1.45 | 1.36 | 1.19 | 1.25 | 1.38 | 1.36 | 1.00 | 1.10 | 1.13 | 1.07 | 1.33 | 1.33 | 1.21 | 1.16 |
| Quick ratio | 0.44 | 0.65 | 0.07 | 0.11 | 0.07 | 0.36 | 0.14 | 0.04 | -1.75 | 0.15 | 0.14 | 0.25 | 0.07 | 0.27 | 0.16 | 0.14 | 0.08 | 0.14 | 0.10 | 0.13 |
| Cash ratio | 0.44 | 0.65 | 0.07 | 0.11 | 0.07 | 0.36 | 0.14 | 0.04 | -1.75 | 0.15 | 0.14 | 0.25 | 0.07 | 0.27 | 0.16 | 0.14 | 0.08 | 0.14 | 0.10 | 0.13 |
Constellation Energy Corp's liquidity ratios indicate its ability to meet short-term financial obligations.
- The current ratio fluctuated over the periods, ranging from 1.00 to 1.88, with an average of about 1.28. This ratio suggests that the company has generally been able to cover its short-term liabilities with its current assets, though there have been some periods of lower coverage.
- The quick ratio shows a similar trend, varying between -1.75 and 0.65, with an average of about 0.16. The negative quick ratio in one period (December 31, 2022) indicates that the company's current assets, excluding inventory, were insufficient to cover its short-term liabilities. This could raise concerns about the company's ability to meet immediate obligations without selling inventory.
- The cash ratio also displayed fluctuations over the periods, ranging from 0.04 to 0.65, with an average of about 0.17. This ratio reflects the company's ability to cover its current liabilities with its cash and cash equivalents, showing some variability in the company's liquid cash position.
Overall, Constellation Energy Corp's liquidity ratios suggest a mixed performance in managing short-term obligations, with some periods indicating stronger liquidity positions than others. Monitoring these ratios is crucial for assessing the company's financial health and ability to navigate short-term financial challenges.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 39.95 | 30.41 | 29.68 | 27.38 | 26.34 | 22.25 | 20.84 | 19.85 | 24.63 | 26.17 | 29.31 | 27.87 | 28.12 | 29.89 | 27.32 | 26.84 | 31.67 | 30.66 | 31.88 | 29.29 |
The cash conversion cycle for Constellation Energy Corp has fluctuated over the years. It measures the time it takes for the company to convert its resources invested in inventory into cash flows from sales. A shorter cycle indicates efficient management of working capital.
From March 31, 2020, to December 31, 2024, the cash conversion cycle varied, ranging from a low of 19.85 days to a high of 39.95 days. The cycle decreased towards the year-end in 2023 but increased in 2024. Generally, lower values are favorable as they imply quicker conversion of inventory to cash, showing effective management of the company's operating cycle.
Analyzing the trend over the years, it is important to investigate the reasons for the fluctuations in the cash conversion cycle. Further analysis is needed to understand the company's inventory management practices, accounts receivable collection efficiency, and accounts payable terms. Monitoring the cycle can help in identifying potential inefficiencies and improving overall working capital management.