Constellation Energy Corp (CEG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 109,000 | 368,000 | 422,000 | 504,000 | 226,000 |
| Short-term investments | US$ in thousands | — | 14,000 | -14,114,000 | 43,000 | 195,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,846,000 | 6,319,000 | 7,839,000 | 7,996,000 | 5,219,000 |
| Quick ratio | 0.02 | 0.06 | -1.75 | 0.07 | 0.08 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($109,000K
+ $—K
+ $—K)
÷ $6,846,000K
= 0.02
The quick ratio of Constellation Energy Corp, a key liquidity metric that indicates the company's ability to meet its short-term obligations using its most liquid assets, has exhibited fluctuations over the years.
As of December 31, 2020, the quick ratio stood at 0.08, indicating that the company had $0.08 in liquid assets available to cover each dollar of current liabilities. This suggests that Constellation Energy had a relatively low level of liquidity at the end of 2020.
The quick ratio declined slightly to 0.07 by December 31, 2021, indicating a further decrease in liquidity. This may raise concerns about the company's ability to quickly meet its short-term financial obligations.
The ratio took a significant negative turn, dropping to -1.75 by December 31, 2022. This negative quick ratio implies that Constellation Energy had more current liabilities than liquid assets on hand, signaling potential financial distress or inefficient asset management during that period.
By December 31, 2023, the quick ratio improved marginally to 0.06, yet it remained relatively low, suggesting continued challenges in managing short-term liquidity.
By December 31, 2024, the quick ratio fell further to 0.02, indicating a potential deterioration in the company's ability to cover its short-term obligations with readily available liquid assets.
Overall, the trend in Constellation Energy Corp's quick ratio over the years highlights fluctuations in liquidity levels, with some periods indicating potential challenges in meeting short-term obligations. Further analysis of the company's liquidity management strategies and operational efficiency may be warranted to address the observed fluctuations in the quick ratio.
Peer comparison
Dec 31, 2024