CenterPoint Energy Inc (CNP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 24,000 | 90,000 | 74,000 | 230,000 | 147,000 |
| Short-term investments | US$ in thousands | 561,000 | 541,000 | 510,000 | 1,439,000 | 871,000 |
| Total current liabilities | US$ in thousands | 4,045,000 | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 |
| Cash ratio | 0.14 | 0.16 | 0.11 | 0.39 | 0.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,000K
+ $561,000K)
÷ $4,045,000K
= 0.14
The cash ratio for CenterPoint Energy Inc has shown fluctuations over the past five years, ranging from 0.11 to 0.39. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In December 2021, the cash ratio improved to 0.39, indicating a stronger liquidity position compared to the previous year. However, this was followed by a decline in the ratio to 0.11 in December 2022, suggesting a potential strain on the company's liquidity.
CenterPoint Energy Inc managed to strengthen its cash position slightly in the following years, with the cash ratio increasing to 0.16 in December 2023 and then to 0.14 in December 2024. While the upward trend is positive, the ratios below 1 indicate that the company may not have sufficient immediate cash to cover all its short-term obligations.
Overall, CenterPoint Energy Inc should continue to monitor and manage its liquidity position effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2024