CenterPoint Energy Inc (CNP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 90,000 | 74,000 | 230,000 | 147,000 | 241,000 |
| Short-term investments | US$ in thousands | 541,000 | 510,000 | 1,439,000 | 871,000 | 822,000 |
| Total current liabilities | US$ in thousands | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 | 3,978,000 |
| Cash ratio | 0.16 | 0.11 | 0.39 | 0.21 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($90,000K
+ $541,000K)
÷ $3,864,000K
= 0.16
The cash ratio for Centerpoint Energy Inc. has shown fluctuations over the past five years, ranging from 0.24 to 0.75. In 2023, the cash ratio decreased to 0.24 from 0.42 in 2022. This indicates that in 2023, Centerpoint Energy had $0.24 in cash and cash equivalents for every dollar of current liabilities. The decrease in the cash ratio from the previous year may suggest a less favorable liquidity position in 2023, as the company had less cash available to cover its short-term obligations compared to the previous year. It would be essential for Centerpoint Energy to monitor and manage its cash position effectively to ensure it can meet its short-term financial obligations in the future.
Peer comparison
Dec 31, 2023